Elkann's Tax Settlement: A Rift in Italy's Business Dynasty

Stellantis and Ferrari's chairman, John Elkann, has agreed to community service and a financial settlement to resolve a tax dispute regarding his grandmother's inheritance, according to Italian prosecutors. Elkann, alongside siblings Lapo and Ginevra, will pay 183 million euros to settle taxes related to the estate of Marella Caracciolo, who passed in 2019.

This agreement ends a criminal investigation against Elkann for alleged tax fraud, awaiting judicial ratification. In Italy, such settlements do not equate to an admission of guilt. Prosecutors have moved to dismiss charges against Elkann's siblings, while their lawyer underscores the absence of liability admittance by Elkann.

Beyond tax issues, a civil inheritance dispute continues, involving Elkann's mother, Margherita, and her claims to overturn prior agreements. This complex legal battle has fractured one of Italy's prominent business families, impacting the legacy of post-war economic symbol Gianni Agnelli, the former Fiat boss.

(With inputs from agencies.)