Italian authorities have seized shares valued at €1.3 billion (£1.1 billion; $1.5 billion) from Lagfin, the company that controls the Campari Group, amid allegations of tax evasion. The seizure is part of a year-long investigation into Lagfin’s financial activities, specifically concerning its merger with its Italian subsidiary.
The investigation is centered on accusations that Lagfin failed to pay a corresponding amount in taxes during this merger process. However, the company has previously stated that it has consistently met its tax obligations. Campari Group, which produces several well-known brands including Aperol and Grand Marnier, has asserted that neither it nor its subsidiaries are implicated in the investigation.
Luca Garavoglia, the chairman of Campari, is reportedly under investigation according to local media. Lagfin, which owns over 50% of Campari’s shares and controls 80% of its voting rights, was approached for comments on the matter but has maintained that it has always adhered to tax regulations. In a statement last year, Lagfin claimed that the allegations against it were unfounded.
The Milanese prosecutors initiated the investigation last year following reports by financial police that identified €5.3 billion of undeclared capital gains from 2018 to 2020, on which the company allegedly did not pay an “exit tax” mandated for companies relocating their headquarters abroad. Additionally, Lagfin is accused of moving its Italian assets to foreign ownership primarily for tax benefits.
Garavoglia, who inherited Campari from his mother, is facing scrutiny alongside Giovanni Berto, the head of Campari’s Italian operations. Campari is recognized as one of the largest global spirits producers, with a market valuation around €7 billion on the Milan Stock Exchange, and traces its origins back to 1860 when Gaspare Campari first created his signature liqueur.
Source: https://www.bbc.com/news/articles/cpq11v5d1rno?at_medium=RSS&at_campaign=rss