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Marzotto Issues Payment in Tax Case

A wire transfer to Italy’s internal revenue service could avoid a trial on allegations of tax evasion.

MILAN — The Marzotto Group has paid a sum of around 56 million euros, or $72 million at current exchange, to Agenzia delle Entrate, Italy’s internal revenue service.

 

Italian daily La Repubblica broke the news, publishing a picture of the wire transfer in Thursday’s edition.  

 

The payment, handled through Luxemburg-based International Capital Growth, follows last April’s decision by Milan public prosecutors’ office to notify and charge 13 individuals, including members of the Marzotto family and administrators of the company, with omission of earnings declarations and tax evasion of more than 71 millions euros, or $91 million at current exchange.

 

Marzotto’s payment may allow the charged people to avoid a criminal trial.

 

Last November, the tax police began investigating International Capital Growth and accused the Marzotto group of creating the aforementioned company in Luxemburg to avoid paying the taxes in Italy on profits derived from the sale of Valentino Fashion Group to private equity firm Permira for more than 782 million euros, or $1 billion, in May 2007.  

 

The police asserted that through this transaction, the Marzotto group netted a capital gain of 200 million euros, or $257 million, and avoided paying more than $71 million euros, or $91, in taxes. The accusations led the police to confiscate Marzotto family assets, including villas and apartments, for an equal sum.