Ferrari and Stellantis chair John Elkann has agreed to perform one year of community service and, together with his siblings Lapo and Ginevra, pay €183 million to Italian tax authorities in a bid to resolve a long-running inheritance tax dispute. Prosecutors confirmed the agreement on Monday, saying it allows the billionaire family to draw a line under years of legal wrangling without any admission of liability. Elkann’s lawyer described the outcome as an opportunity to bring “a painful affair to a swift and definitive close.”

The case centers on the estate of Elkann’s grandmother, Marella Caracciolo, who died in 2019. Italian prosecutors had alleged that the Elkann siblings failed to declare roughly €1 billion in assets and €248.5 million in income, claiming Marella was a Swiss resident at the time of her death. As part of the settlement, John Elkann will propose where he can carry out his community service, with options including centers for the elderly or facilities supporting people struggling with drug addiction. If granted probation, his proceedings will be suspended and, upon completion, all charges against him will be extinguished.

Elkann, a member of Italy’s powerful Agnelli dynasty and grandson of Fiat boss Gianni Agnelli, has long been a key figure in the family business. He has chaired Ferrari since 2018 and Stellantis since 2021, after previously serving as chairman of Fiat. His siblings Lapo and Ginevra will also benefit from the arrangement, as prosecutors have asked for the dismissal of charges against them, effectively clearing their records once the settlement is finalized.

The dispute over inheritance has been complicated by a wider family feud. John, Lapo, and Ginevra Elkann have been locked in a civil case with their mother, Margherita Agnelli, over the estate of Gianni Agnelli, who transformed Fiat into a global conglomerate before his death more than 20 years ago. Margherita inherited €1.2 billion but has sought to overturn agreements she signed in 2004, arguing that funds should benefit her five younger children from a second marriage rather than her three eldest from her first marriage.

While the criminal proceedings against the Elkann siblings appear to be drawing to a close, the civil battle within the Agnelli family continues. Lawyers for Margherita Agnelli welcomed the resolution of the tax case, saying it clarified some aspects of the broader estate dispute. For John Elkann, however, the settlement allows him to remain focused on leading Ferrari and Stellantis, two of the most prominent names in the global automotive industry, while seeking to put the controversy firmly behind him.

Source: BBC.