The Elkann Brothers: Tax Evasion Strategies Uncovered

The Elkann Brothers and Allegations of Tax Evasion

The Elkann brothers, John, Lapo, and Ginevra, are currently embroiled in serious legal issues concerning allegations of tax fraud related to the Agnelli inheritance.
Their assets, valued at an astonishing €74.8 million, have been seized as part of the investigation.

To avoid Italian taxes and evade potential claims from their mother regarding inheritance, the brothers allegedly devised a meticulous plan to relocate valuable items belonging to their grandmother, Marella Caracciolo.
This involved moving artwork, jewelry, and other precious objects between various residences to obscure their location.
Their aim was to ensure that when their grandmother passed away, these items would not be included in the official inventory for inheritance claims.

Locations such as St.
Moritz, Zurich, Lauenen, Marrakech, Rome, and Turin served as the backdrop for these clandestine moves, with the valuables ultimately being transferred to external storage sites.
Their strategy was predicated on the notion that items missing from the family residences at the time of death would not be documented, allowing them to be classified as gifts instead.

Discovery of Potential Fraud

However, these so-called gifts were deemed fraudulent by the prosecution, who argued that such actions represented a stripping of the estate to avoid paying inheritance taxes.

Significantly, Paola Montaldo, the family’s secretary, has emerged as a central figure in the investigation.
She was privy to all of Marella Caracciolo’s asset movements and had a hand in the transfer of jewelry, paintings, and gold bars from their grandmother to the siblings.

Montaldo’s involvement could be pivotal; she may become a key witness in a potential trial against John, Lapo, and Ginevra.
Many of the incriminating documents detailing their tax evasion were written by her hand.
Additionally, an extensive email she sent to John Elkann outlined the division of the assets that were removed from the estate to avoid succession taxes.

The Impact of Asset Removal

The estate was left with lower-value assets and items that the grandmother couldn’t legally gift to her grandchildren.
The total removal of assets has been estimated at €170 million, including €78 million worth of earrings alone, severely obscuring the inheritance’s actual value.

Judge Antonio Borretta noted, “The Elkann brothers acted with the intention of profit despite their undoubted financial well-being, demonstrating a persistence in seeking further advantage.
The matter of the ‘gifts’ chosen post-mortem by Marella Caracciolo clearly indicates this tendency.”

The missing items include not only jewelry but also valuable artworks from renowned artists like Picasso, De Chirico, Balla, Bacon, Modigliani, Mondrian, and Klee, as well as gold bars and precious stones.

A Controversial Book

Compounding the allegations are details regarding a book co-authored by Marella Caracciolo and her granddaughter, Marella Chia, titled “Ho coltivato il mio giardino.” John Elkann reportedly edited this work to present his grandmother as a resident of Switzerland.

The intent behind this maneuver was to initiate inheritance proceedings in Switzerland rather than Italy, taking advantage of Swiss laws that could exempt capital gains from taxation.
Additionally, in 2004, Margherita Agnelli signed a waiver to her inheritance, including her mother’s, which, while invalid in Italian law, was recognized under Swiss jurisdiction.