Campari's Tax Evasion: A Complex Web of Allegations and Seized Assets
The Italian police have recently seized shares worth €1.3 billion from Lagfin, the Luxembourg-based company controlling the manufacturer of Campari, over alleged tax evasion. This move comes as part of a year-long investigation into Lagfin's absorption of its Italian arm, with prosecutors in Milan launching a probe into the company last year. Financial police have alleged the discovery of €5.3 billion in undeclared capital gains between 2018 and 2020, on which the company allegedly failed to pay the 'exit tax' levied on firms transferring their headquarters abroad.
Campari, a renowned global spirits producer with a rich history dating back to 1860, is valued at around €7 billion on the Milan Stock Exchange. The company's roots trace back to Milan, where Gaspare Campari's homemade bitter liqueur became a popular tipple among patrons of his bar. The family's success led to commercial manufacturing in 1904, and the company began acquiring other alcohol brands from the 1990s onwards.
However, the current situation is far from ordinary. The company is accused of failing to pay a similar figure to the seized shares in taxes during the merger, despite previously asserting its compliance with tax obligations. The investigation implicates Campari's chair, Luca Garavoglia, alongside Giovanni Berto, the head of Campari's Italian branch, suggesting a potential web of corporate and personal responsibility. As the investigation unfolds, the impact on Campari's reputation and financial standing remains to be seen, leaving many to ponder the consequences of alleged tax evasion in the corporate world.
