Italian financial police have seized shares worth €1.3 billion from Lagfin, the Luxembourg-based company that controls Campari Group. This action is part of a year-long investigation into alleged tax evasion related to how Lagfin absorbed Campari's Italian arm. Prosecutors in Milan allege €5.3 billion in undeclared capital gains between 2018 and 2020, on which an "exit tax" was reportedly not paid. Both Lagfin and Campari Group have previously stated they have consistently fulfilled their tax obligations.
Investigation Details
Officials ordered the confiscation of Campari Group shares from Lagfin. The investigation, launched by Milan prosecutors last year, focuses on the alleged failure to pay taxes during a merger. Financial police reported on Friday that they allegedly identified €5.3 billion of undeclared capital gains from 2018 to 2020. These gains are associated with an "exit tax," typically levied on firms that transfer their headquarters abroad. Italian financial newspaper Il Sole 24 Ore also reports accusations that Italian assets were transferred into foreign ownership solely for tax purposes.
Company Statements
Campari Group, a producer of alcohol brands including Aperol, Grand Marnier, and Courvoisier, stated that neither it nor its subsidiaries are involved in the case. Lagfin, which owns over 50% of Campari shares and holds 80% of voting rights, previously issued a statement regarding the investigation last year. The company asserted it had "always fulfilled its tax obligations with the utmost scruples in all the jurisdictions where it operates" and deemed any claims to the contrary "devoid of any basis."
Individuals Implicated
Local media reports indicate that Luca Garavoglia, chair of Campari Group, is among those under investigation. Giovanni Berto, the head of Campari's Italian branch, is also reportedly implicated.
Company Background
Campari Group is one of the largest global producers of spirits, with a valuation of approximately €7 billion on the Milan Stock Exchange. The company originated in 1860, when Gaspare Campari's liqueur gained popularity in Milan. Commercial manufacturing began in 1904, and the firm expanded through acquisitions of other alcohol brands starting in the 1990s.