Seven Danieli executives face tax fraud charges

Thursday, 26 February 2015 17:50:44 (GMT+3)   |   Brescia
       

The public prosecutor's office in the northern Italian city of Udine has completed an investigation regarding Buttrio, Udine-based Italian Group Danieli and is now seeking the trial of seven of the company's executives. The investigation relates to the field of international taxation and so-called "dummy companies" in low-tax jurisdictions and tax havens. A preliminary hearing has been set for May 8.

The tax evasion and fraud of which Danieli has been accused concerns a total of about €281 million, including about €80 million of unpaid taxes. Danieli has allegedly used three dummy companies formally based in Luxembourg, but operationally managed in the Italian region of Friuli-Venezia Giulia.

The charges also relate to an alleged round of fictitious intra-group transactions to create interest and tax benefits for the holding company, as well as hidden funds for donations to foreign entities, through false invoices to a company based in the UAE.

The investigation was concluded last December but has just been made public. The seven who face trial include Giampietro Benedetti, president of Danieli, and six managers of the group.

Late on February 25, Danieli published on the website of the Italian Stock Exchange a statement in which it says that Danieli "has been in Luxembourg since 1981 and ever since has developed a process of internationalization of its business which brought it to control over 50 operating companies all around the world".

The company, the text continues, "while rejecting any wrongdoing, has cooperated fully with the tax police and is confident that it has acted in full compliance with regulations."