Italian Police Seize €1.3 Billion Campari Shares in Tax Fraud Probe

Italian authorities have seized approximately €1.3 billion in shares from Lagfin, the Luxembourg-based holding company controlling the Campari group, amid an investigation into alleged tax fraud and evasion. The probe centers on a 2018 cross-border merger between Lagfin and its Italian subsidiary Alicros, during which capital gains exceeding €5.3 billion were reportedly not declared, resulting in unpaid "exit tax" obligations. Prosecutors allege that complex transactions masked the true management of assets, with the Italian company formally transferring assets to a new domestic branch while operational control remained with the foreign parent. The seizure order was executed by the Guardia di Finanza and coordinated by the Monza prosecutor's office, with Campari Chairman Luca Garavoglia among those under investigation. Campari itself has denied any involvement in the case, emphasizing that neither it nor its subsidiaries are party to the investigation. This development marks a significant escalation in the tax fraud probe that began following audits from 2018 to 2020, highlighting the legal scrutiny faced by multinational corporate structures utilizing cross-border mergers.