MILAN/MONZA - The Italian financial police (Guardia di Finanza) have struck a massive blow against suspected tax evasion in the world-famous spirits group Davide Campari-Milano. By order of the Monza public prosecutor's office, Campari ordinary shares worth around 1.3 billion euros were preventively confiscated. The measure was taken on Friday evening after the close of trading. It is not aimed directly at the Aperol producer itself, but at its majority shareholder, the holding company Lagfin S.C.A. based in Luxembourg. The accusation is serious: „fraudulent tax declaration“.
Billions in profits from merger not taxed?
The investigations were triggered by a tax audit at the Italian branch of the holding company. At the heart of the matter is a merger from 2019, in which Luxembourg-based Lagfin took over its Italian subsidiary Alicros. According to the investigators, Lagfin allegedly failed to report so-called „exit tax profits“ - taxable profits that arise when assets are relocated abroad. This involves a sum of more than 5.3 billion euros that was generated in Italy but is believed to have remained untaxed.
The investigators accuse the group of having only formally transferred assets to a new Italian branch, while the actual administration was carried out from abroad. The amount of 1.29 billion euros that has now been confiscated corresponds exactly to the allegedly evaded tax sum. The freeze affects around 16 percent of the capital of the traditional listed company. Lagfin, which holds 51.8 percent of Campari shares, immediately rejected the accusations. The tax dispute has been going on for two years and does not affect the Campari Group. The company is convinced that it has acted in accordance with the law and will defend itself. The controlling majority is not at risk.
