Ferrari chairman agrees to $214million settlement in tax fraud dispute
John Elkann has settled a tax dispute with a huge settlement and agreement to perform community service.
Ferrari chairman John Elkann has agreed to pay a hefty settlement in connection to a tax dispute relating to the inheritance he received from his grandmother.
Elkann and his brother and sister will pay Italian tax authorities 183million euro (£158.4m; $214m), with John Elkann also agreeing to a year of community service.
John Elkann settles tax fraud dispute
The trio inherited an estate worth an estimated 800million euro (£692.4m; $953m) following their grandmother’s death in 2019.
In reaching an agreement over the matter, Elkann has made no admission of guilt in either the settlement fee or by agreeing to community service.
The latter concession also brings an end to a criminal investigation against him for tax fraud relating to the inheritance.
The matter must now be agreed upon by a judge, with specifics of Elkann’s community service yet to be confirmed.
John Elkann is one of the most influential figures in Formula 1, courtesy of his role as chairman of Ferrari.
While Fred Vasseur runs the F1 operation, Elkann is a key figure across the broader Ferrari business, alongside his role as chair of Stellantis, one of the largest car companies on the planet.
In addition to Fiat, a company founded by Elkann’s great-grandfather, Jeep, Peugeot, Subaru, Maserati, Alfa Romeo, and Chrysler also fall under the Stellantis umbrella.
Elkann was a key figure in attracting Lewis Hamilton to Ferrari for the current campaign.
The much-hyped relationship has thus far failed to deliver as hoped, though the Ferrari boss has defended the move as far more than a marketing decision, as some cynics have suggested.
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“I think it’s really unfair to Lewis,” Elkann told Time magazine.
“Truth said, Lewis doesn’t need that. Ferrari doesn’t need that.
“What we need to do is win championships and do great things on the track. If that happens, what we can do outside of the track, in some ways, takes care of itself.
“There’s unlimited possibilities.”
Following Hamilton’s arrival at Ferrari, the sports car marque enjoyed a market value growth estimated between $7billion and $10billion as its share price shot up by 10 per cent.
In addition to his work with Ferrari and Stellantis, Elkann was also announced as a board director for Meta Platforms in January.
He has an estimated personal wealth of $2.8billion.
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