Police Seize €1.3bn Campari Shares in Tax Evasion Probe

Italian authorities have recently seized shares valued at €1.3 billion of Campari Group, linked to a tax evasion investigation. The shares originate from Lagfin, a Luxembourg-based firm that controls a significant portion of the Campari Group.

Details of the Tax Evasion Probe

The seizure was part of a year-long investigation sparked by the merger of the Italian arm of Campari. Lagfin is accused of failing to pay taxes equivalent to the value of the seized shares during this corporate restructuring.

Company’s Response

Campari Group, known for brands like Aperol and Grand Marnier, asserts that it has complied with all tax regulations. However, Luca Garavoglia, the chairman of Campari, is under scrutiny in this ongoing investigation.

Investigation and Allegations

The probe was initiated by Milan prosecutors in the previous year. Authorities have reportedly uncovered €5.3 billion in undeclared capital gains from 2018 to 2020. These gains are subject to an “exit tax,” typically applied to firms relocating their headquarters abroad.

• Lagfin holds over 50% of Campari shares.
• It possesses 80% of the company’s voting rights.
• The investigation suggests Lagfin transferred Italian assets to foreign ownership for tax benefits.

Key Individuals Involved

Alongside Garavoglia, Giovanni Berto, the head of Campari’s Italian operations, is also implicated in the inquiry. Both individuals are reportedly cooperating with investigators.

Company’s Valuation and History

Campari Group stands as one of the largest global spirits producers, with a market valuation of approximately €7 billion on the Milan Stock Exchange. The company traces its origins back to 1860, stemming from Gaspare Campari’s production of a homemade bitter liqueur in Milan.

With the company’s heritage and successful brand portfolio, any significant legal issues could impact its operations and market reputation. Lagfin has vowed to defend itself vigorously, characterizing the matter as a tax dispute rather than a failure to comply with the law.