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| Italian prosecutors finish investigation into San Marino 'tax evasion ring' | Italian prosecutors finish investigation into San Marino 'tax evasion ring' |
| (2 months later) | |
| Italian prosecutors say they have concluded investigations into an alleged tax evasion ring that they say smuggled €1bn ($1.32bn) a year on behalf of high-profile figures into the tiny state of San Marino. | Italian prosecutors say they have concluded investigations into an alleged tax evasion ring that they say smuggled €1bn ($1.32bn) a year on behalf of high-profile figures into the tiny state of San Marino. |
| The Rome prosecutor's office said the system served about 1,500 clients – including big names in showbusiness, banking and business – and had been operating since at least 2000. | The Rome prosecutor's office said the system served about 1,500 clients – including big names in showbusiness, banking and business – and had been operating since at least 2000. |
| Tax evasion is estimated to cost Italy €120bn a year, and cracking down on the practice has been a key part of recent government efforts to reduce a huge public debt, equivalent to nearly 130% of annual output. | Tax evasion is estimated to cost Italy €120bn a year, and cracking down on the practice has been a key part of recent government efforts to reduce a huge public debt, equivalent to nearly 130% of annual output. |
| A prosecutors' statement seen by Reuters said managers of the now-defunct San Marino Investimenti (SMI) group smuggled money into the world's smallest republic, an enclave in north-east Italy, then invested it in low-tax jurisdictions such as Panama, Luxembourg and the US state of Delaware. | A prosecutors' statement seen by Reuters said managers of the now-defunct San Marino Investimenti (SMI) group smuggled money into the world's smallest republic, an enclave in north-east Italy, then invested it in low-tax jurisdictions such as Panama, Luxembourg and the US state of Delaware. |
| Seven former SMI employees are under investigation on suspicion of international conspiracy, money laundering and providing illegal investment and financial services, the statement said. No charges have been brought so far. SMI went into receivership last year. | Seven former SMI employees are under investigation on suspicion of international conspiracy, money laundering and providing illegal investment and financial services, the statement said. No charges have been brought so far. SMI went into receivership last year. |
| Italy has one of the world's highest rates of tax evasion and, in the fight to curb the phenomenon, even some of the country's most prominent names have been affected. The fashion designers Domenico Dolce and Stefano Gabbana were given a 20-month prison sentence – suspended pending appeal – last month. The pair deny wrongdoing and are now involved in a high-profile spat with Milan's city council after an official said they should be denied the use of public space in the aftermath of their convictions. | Italy has one of the world's highest rates of tax evasion and, in the fight to curb the phenomenon, even some of the country's most prominent names have been affected. The fashion designers Domenico Dolce and Stefano Gabbana were given a 20-month prison sentence – suspended pending appeal – last month. The pair deny wrongdoing and are now involved in a high-profile spat with Milan's city council after an official said they should be denied the use of public space in the aftermath of their convictions. |
| "Their fashion is seen as excellent the world over," he was quoted as saying, "but we do not need tax evaders to promote us." The remarks prompted the design company to close its Milan stores for three days "out of indignation". | "Their fashion is seen as excellent the world over," he was quoted as saying, "but we do not need tax evaders to promote us." The remarks prompted the design company to close its Milan stores for three days "out of indignation". |
| Under Mario Monti, the former technocrat prime minister brought in to shore up the economy in 2011, the Italian state began trying to claw back billions in undeclared revenue. Those efforts have continued under his successor, Enrico Letta of the centre-left Democratic party, who has vowed to pursue the crackdown. He was left red-faced, however, when his equal opportunities minister Josefa Idem, a former Olympic canoeing champion, resigned after only two months in the job after it emerged there were irregularities in the property tax payments on one of her residences. | Under Mario Monti, the former technocrat prime minister brought in to shore up the economy in 2011, the Italian state began trying to claw back billions in undeclared revenue. Those efforts have continued under his successor, Enrico Letta of the centre-left Democratic party, who has vowed to pursue the crackdown. He was left red-faced, however, when his equal opportunities minister Josefa Idem, a former Olympic canoeing champion, resigned after only two months in the job after it emerged there were irregularities in the property tax payments on one of her residences. |
| The former prime minister Silvio Berlusconi, meanwhile, is awaiting the result of a final appeal against a conviction for complicity in tax fraud at his Mediaset empire. If the conviction is upheld, he faces a five-year ban on holding public office and a four-year jail term which will nonetheless be suspended given his age. | The former prime minister Silvio Berlusconi, meanwhile, is awaiting the result of a final appeal against a conviction for complicity in tax fraud at his Mediaset empire. If the conviction is upheld, he faces a five-year ban on holding public office and a four-year jail term which will nonetheless be suspended given his age. |
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