Ferrari chair Elkann settles tax dispute with hefty settlement

John Elkann, the influential chairman of Ferrari and a prominent figure in the Formula 1 paddock, has reached a significant settlement with Italian tax authorities, resolving a high-profile dispute over the inheritance of his late grandmother, Marella Caracciolo, who passed away in 2019.

The agreement, which involves Elkann and his siblings, Lapo and Ginevra, marks the end of a contentious legal battle and a criminal investigation into alleged tax fraud.

The Elkann siblings have agreed to pay €183 million (£158.4 million; $214 million) to settle claims that they failed to declare approximately €1 billion in assets and €248.5 million in inheritance following their grandmother’s death, on the basis that she was a Swiss resident.

The agreement brings closure to a criminal investigation into Elkann for tax fraud, with the terms now awaiting final approval from a judge.

As part of the settlement, Elkann has also committed to a year of community service, although details of the latter remain undecided. But reports suggest he may propose working with organizations such as centers for the elderly or those supporting individuals with drug addiction.

Legal Resolution Without Admission of Guilt

Paolo Siniscalchi, Elkann’s attorney, emphasized that the settlement and community service do not imply any wrongdoing.

"John Elkann's request for probation must be viewed in this context and does not entail, just as the settlement with the tax authorities does not, any admission of responsibility,” he said in a statement to the BBC.

“If this request is granted, the proceedings against him will be suspended, and upon the successful completion of the probationary period, will conclude with a ruling extinguishing all the charges for which John Elkann is currently under investigation.

This outcome would mirror that of his siblings Ginevra and Lapo, for whom dismissal of charges has been requested."

The resolution allows Elkann to move forward without a formal conviction, potentially aligning his legal outcome with that of his siblings, who are also seeking dismissal of charges.

A Titan of Industry and Formula 1

As chairman of Ferrari, Elkann is a central figure in the F1 paddock, having played a pivotal role in securing the services of seven-time world champion Lewis Hamilton for the Scuderia’s 2025 season.

While Fred Vasseur oversees the day-to-day operations of Ferrari’s F1 team, Elkann’s strategic oversight shapes the broader Ferrari brand.

• Read also: Ferrari chairman Elkann opens up on Vasseur contract renewal

Additionally, as chairman of Stellantis, Elkann manages a portfolio that includes iconic brands such as Fiat – founded by his great-grandfather, Giovanni Agnelli – Jeep, Peugeot, Subaru, Maserati, Alfa Romeo, and Chrysler.

The settlement closes a challenging chapter for Elkann, allowing him to refocus on his leadership roles in both the automotive and motorsport worlds.

As the legal process moves toward finalization, the Ferrari chairman’s presence in the F1 paddock is likely to remain as prominent as ever, undeterred by the now-resolved tax dispute.

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