Share |

Italy’s Marzotto fashion family under scrutiny

Italy’s Marzotto family, the former owner of Valentino Fashion Group, has made headlines for alleged tax evasion during the sale of the clothing company in 2007.

Italy’s Marzotto family, the former owner of Valentino Fashion Group, has made headlines for alleged tax evasion during the sale of the clothing company in 2007.

The country’s police have reportedly confiscated assets worth €65 million, including a 15th century castle, owned by the Marzottos.

According to the police in Milan, the family made profits of around €200 million following the sale of its stake in Valentino but did not pay any tax on the gains.

The Marzottos sold the family business, along with subsidiary Hugo Boss, to private equity company Permira Advisers five years ago for €5.4 billion.

It is alleged the family avoided paying taxes in Italy by using a Luxembourg-based holding company.

But the family has denied any tax evasion. According to reports in the financial media, lawyers representing the family have said the seizure of assets was “totally groundless” because the Marzottos had not only declared their capital gains but also paid the necessary tax.

Tax evasion has recently been in the limelight in Italy, which last month saw former prime minister Silvio Berlusconi sentenced to four years in prison for tax fraud. However, the Italian is unlikely to spend any time in prison due to an amnesty law and other privileges.

Valentino was sold by Permira to Qatar-based investment group Mayhoola in July 2012.

Click here >>
Close