John Elkann, chairman of Ferrari and Stellantis, has agreed to undertake one year of community service and pay €183 million jointly with his siblings to settle an Italian inheritance tax case, as confirmed by prosecutors on Monday. The settlement brings an end to the criminal investigation without any admission of guilt.
Elkann and his siblings, Lapo and Ginevra, will make the payment to Italian tax authorities in relation to the estate of their grandmother, Marella Caracciolo, who passed away in 2019. The amount settles claims of tax evasion on an inheritance estimated by authorities to be worth approximately €800 million. This resolution follows allegations that the siblings failed to declare significant assets and income.
As part of the agreement, Elkann must propose a suitable institution for his community service, which could involve assisting at a center for the elderly or an organization supporting drug addiction recovery. This probationary measure is conditional upon judicial approval and is intended to serve a social benefit while resolving the legal matter.
The tax dispute originated from claims that the Elkann siblings did not declare around €1 billion in assets and €248.5 million in income, arguing that their grandmother was a resident of Switzerland and thus not subject to Italian inheritance taxes. Italian prosecutors disputed this residency claim, leading to the criminal investigation for tax fraud.
Prosecutors in Turin have endorsed the settlement and requested the judge to dismiss the case against Elkann’s siblings. In Italy, such plea bargains are a common legal mechanism that allows for case resolution without an admission of guilt, focusing on practical outcomes rather than establishing liability.
This case is part of a broader family conflict over the estate of Gianni Agnelli, the former Fiat chief who died in 2003. A civil lawsuit is ongoing, involving Elkann and his siblings against their mother, Margherita Agnelli, who is seeking to revise inheritance agreements to ensure fair distribution among all her children.
Last year, a judge in Turin seized money and assets worth nearly €75 million from the Elkann siblings as part of the investigation. Margherita Agnelli’s lawyers have expressed satisfaction with the current outcome, viewing it as validation of her claims in the civil proceedings and potentially strengthening her case.
Elkann’s attorney, Paolo Siniscalchi, stated that the prosecutors’ decisions offer a chance to conclude this painful affair promptly and definitively. The settlement now awaits judicial ratification, and upon successful completion of the community service, all charges will be extinguished, potentially bringing closure to this long-standing dispute affecting one of Italy’s most prominent business families.