Italian authorities seize US$1.49B in Campari shares amid alleged tax fraud
Italy’s tax agency seizes €1.29 billion (US$1.49B) in Campari shares over alleged tax evasion linked to holding company Lagfin.
ITALY – Italian tax authorities have seized Campari shares worth €1.29 billion (US$1.49B) from Luxembourg-based holding company Lagfin as part of an investigation into alleged tax fraud involving the Garavoglia family, the majority shareholders of the drinks group.
The seizure follows accusations that Lagfin, which controls 51.3% of Campari’s shares and 38.8% of its voting rights, failed to pay taxes owed during a cross-border merger.
The alleged offences include “fraudulent declaration by means of artifice” and “administrative liability of legal persons” between 2018 and 2020.
According to investigators, the case stems from the 2020 merger of Italian-based Alicros, the group’s previous holding company, with Lagfin, which is domiciled in Luxembourg.
Authorities claim that the merger resulted in undeclared capital gains exceeding €5.3 billion, which should have been subject to Italy’s exit tax.
The investigation began last year after the merger prompted scrutiny of the company’s financial restructuring. Prosecutors allege that the transaction was designed to move assets abroad rather than driven by business necessity.
Those indicted as legal representatives of Lagfin include Luca Garavoglia, chairman of Campari Group and head of the Garavoglia family, and Giovanni Berto, who leads Campari’s Italian operations. Both are accused of overseeing the alleged scheme.
The value of the seized shares corresponds to the tax amount in question and will remain frozen pending the case’s outcome.
Campari Group, which moved its formal registration to Amsterdam in 2020 to take advantage of Dutch corporate laws and tax benefits, stated that it is not involved in the case. The company also confirmed that none of its subsidiaries are under investigation.
Lagfin has denied all allegations, maintaining that it will “vigorously and serenely” defend itself before all competent authorities.
The case highlights growing scrutiny by Italian tax authorities over corporate mergers and cross-border asset transfers, particularly those involving high-value holdings relocated to low-tax jurisdictions.
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