MILAN — While they were expected at their tax trial here on Wednesday, Matteo Marzotto and his sister Diamante decided to skip the hearing.
The Marzottos were meant to make personal statements to the court. According to one source, the textile heirs wished to continue to maintain the understated, low-profile they have kept throughout the legal proceedings. The Marzotto siblings are indicted with other defendants for alleged omission of earnings declaration and tax evasion in connection to the sale of Valentino Fashion Group to private equity fund Permira Advisers LLC in May 2007. Core to the trial is International Capital Growth, a firm the tax police believe to be a fictitious entity based in Luxembourg and managed in Milan, and allegedly created for the purpose of selling 29.9 percent of VFG.
On Wednesday, consultant Livia Salvini, who was called by the Marzottos’ lawyers, said ICG was “not simulated” and was created to manage the shares of the different shareholders. Based on fiscal calculations, Salvini said the total tax rate on capital gain and profit in Luxembourg was 25.64 percent compared with 21.57 percent if the company had been based in Italy.
The next hearings are scheduled on Oct. 16 and Oct. 28. The last is expected to be on Dec. 4 and Judge Orsola De Cristofaro could hand down a verdict that day.