The chair of Ferrari and Stellantis has agreed to do one year of community service and jointly pay millions of euros to settle a dispute over inheritance tax in Italy.
John Elkann and his siblings Lapo and Ginerva will pay €183m (£159m) to Italian tax authorities, according to reports.
Mr. Elkann's lawyer emphasized that this agreement does not denote an admission of liability from him or his siblings.
The legal settlement aims to bring a swift conclusion to what has been described as a painful situation.
Elkann, who comes from one of Italy's most influential families, is the grandson of Gianni Agnelli, the former head of Fiat.
The tax dispute pertains to the estate of Elkann's grandmother, Marella Caracciolo, who passed away in 2019.
In compliance with the terms, Elkann must propose where he could do his community service, with options possibly including work at centers for the elderly or drug addiction recovery.
According to Elkann's attorney, the request for probation is intended to be within the context of the settlement, which does not imply responsibility. If approved, the legal proceedings against Elkann will be paused, leading to a complete dismissal of charges upon successful completion of the probation.
The Elkann siblings were accused of failing to declare roughly €1bn in assets and €248.5m in income, asserting their grandmother's Swiss residency as justification.
Prosecutors recently accepted the settlement agreement, leading to the dismissal of criminal charges against Elkann's siblings.
This legal issue is part of a wider conflict involving the Elkann siblings and their mother, Margherita Agnelli, regarding the inheritance of Gianni Agnelli’s estate. A civil case concerning these inheritance agreements continues.
Gianni Agnelli significantly developed Fiat, transforming it from a minor car manufacturer to a formidable conglomerate before his death over two decades ago.
Margherita Agnelli, who inherited €1.2bn, is contesting prior agreements made in 2004 to secure her estate for her second marriage's children, rather than her older three.
Elkann, who has chaired Stellantis since 2021 and Ferrari since 2018, has been involved in Fiat's leadership roles since 1997.
