Police Seize €1.3bn from Campari Owner Over Alleged Tax Evasion
In a significant development, Italian police have seized shares worth €1.3 billion (£1.1 billion; $1.5 billion) from Lagfin, the company controlling the renowned manufacturer of Campari. This action is part of an extensive year-long investigation regarding alleged tax evasion linked to the absorption of its Italian subsidiary. According to officials, Lagfin is accused of not paying taxes equivalent to the amount of the shares confiscated during this merger.
Allegations Against Lagfin
– Investigation Background: Prosecutors in Milan initiated a probe into Lagfin last year, focusing on its financial dealings from 2018 to 2020.
– Undeclared Gains: Financial police discovered approximately €5.3 billion in undeclared capital gains that should have incurred an exit tax—a tax imposed on companies relocating their headquarters abroad.
– Tax Avoidance Concerns: Reports suggest Lagfin may have transferred Italian assets into foreign ownership solely for tax benefits, raising red flags with authorities.
Despite the escalating scrutiny, Lagfin maintains its innocence, asserting that it has consistently adhered to all applicable laws, including Italian tax regulations. The company’s chairman, Luca Garavoglia, along with Giovanni Berto, head of Campari’s Italian branch, are reportedly under investigation.
Campari’s Position on the Matter
In light of these allegations, Campari has emphasized that the company and its subsidiaries are not involved in the ongoing case. Lagfin issued a statement declaring its intention to defend itself vigorously, framing the situation as a tax dispute. They further stressed that the seizure won’t impact their control over Campari, as they hold over 50% of the shares and 80% of the voting rights.
The Legacy of Campari
Founded in 1860 when Gaspare Campari created his iconic bitter liqueur in a Milan bar, the company has evolved into one of the largest global spirits producers, now valued at approximately €7 billion on the Milan Stock Exchange. Campari’s illustrious portfolio also includes other renowned brands like Aperol, Grand Marnier, and Courvoisier, showcasing its prominent position in the beverage industry.
As this situation unfolds, it remains to be seen how it will affect Campari’s standing and operations in the market. The firm continues to stress that it operates within the bounds of the law, ensuring its legacy remains untarnished amidst these serious allegations.