Italian tax police have said they are seizing assets worth €1.29bn from the Campari Group’s controlling shareholder, the Luxembourg-based holding company Lagfin. 

A judge in Monza, northeast of Milan, has approved the seizure order as police investigate allegations of tax evasion. 

The investigation began with a tax audit following a merger in which Lagfin absorbed its Italian subsidiary. 

At that time, Milan prosecutors launched a criminal probe, saying that the Guardia di Finanza police had uncovered around €1bn in unpaid taxes spanning from 2018 to 2020. 

On Friday (31 October), police further commented that they had found €5.3bn of undeclared capital gains on which the company failed to pay a so-called “exit tax” required of firms that move their fiscal headquarters abroad. 

According to the Italian financial newspaper Il Sole 24 Ore, the company has also been accused of transferring its Italian assets into foreign ownership purely for tax purposes. 

A statement from Lagfin claims that the seizure is connected to an investigation that began two years ago and has never “involved Campari Group in any manner whatsoever”.  

Lagfin stated its innocence, saying it has always “acted in the most scrupulous respect of any applicable laws and regulations, including any Italian tax laws”. 

Campari also issued a statement: “In relation to articles published by the media, Campari Group clarifies that the tax litigation between Lagfin and the Italian tax authorities does not concern either Davide Campari-Milano or any of its subsidiaries.” 

“Therefore, no impact whatsoever is expected for Davide Campari-Milano nor for any of its subsidiaries,” it continued.  

However, according to the seizure order, it is alleged that Campari chairman Luca Garavoglia is among those under investigation for fraudulent tax returns. His lawyers did not immediately reply to requests for comment. 

Giovanni Berto, the head of Campari’s Italian branch, has also been implicated, according to local media. 

Today (3 November), it was reported that shares in Campari fell by 5% following the news of the investigation.