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 multiple media reports.
Mr Elkann's lawyer said the agreement did not include an admission of liability from the Ferrari chair and his siblings, describing the prosecutors' decisions as an opportunity to bring this painful affair to a swift and definitive close.
Mr Elkann, a member of one of the most powerful families in Italy, is the grandson of Gianni Agnelli, the former boss of Fiat. The tax dispute relates to the estate of Mr Elkann's grandmother, Marella Caracciolo, who died in 2019.
Mr Elkann will need to suggest where he could do his community service, which may include helping at a centre for the elderly or a centre for people with drug addiction.
Paolo Siniscalchi, the Elkanns' attorney, stated that John Elkann's request for probation does not entail any admission of responsibility, and if granted, charges would be dismissed upon completion of the probationary period.
Prosecutors had alleged that the Elkann siblings failed to declare roughly €1bn in assets and €248.5m in income, claiming their grandmother was a Swiss resident.
Prosecutors accepted the settlement and asked the judge to drop criminal charges against Mr Elkann's siblings, which were dismissed.
The tax case is part of a broader dispute between the Elkann siblings and their mother, Margherita Agnelli, over the estate of Gianni Agnelli. Ms Agnelli, who inherited €1.2bn euros, is engaged in a civil case to overturn previous agreements she signed after her father's death.
Ms Agnelli's lawyers welcomed the outcome of the tax and criminal proceedings. Mr Elkann has been chair of Stellantis since 2021 and became chair of Ferrari in 2018, having first joined Fiat's board in 1997 and previously serving as the company's chair.
