Gruppo Mastrotto agrees to pay outstanding tax

15/03/2012
Prominent Italian tanning group Gruppo Mastrotto has agreed to pay the financial authorities EUR 27 million in outstanding taxes. The Arzignano-based group was accused by the authorities last year of paying employees “under the table” to avoid taxes. Special agents placed the Mastrotto Group under investigation at the end of August 2011, saying that they had uncovered evidence of undeclared payments to more than 170 of its 800 employees.

The group has made no official comment on the EUR 27 million pay, but Roberto Zuccato, president of local industry association, Confindustria Vicenza, has reacted by saying his organisation has always condemned tax evasion and will continue to do so. “Tax evasion is a pathological factor in social injustice in our country,” Mr Zuccato said, “and it distorts competition. It’s right for the authorities to go after it. However, I take heart from the fact that Gruppo Mastrotto is now working with the authorities to find a solution and to pay the taxes that are in arrears from the past.”

In September, 2011, the chief executive of Gruppo Mastrotto, Chiara Mastrotto, whose father and uncle (Bruno and Santo Mastrotto) founded the group, stepped down from a representative position at Confindustria. Senior figures in the organisation in Vicenza denied at the time that they had forced her to resign over the tax evasion scandal and publicly thanked her for the gesture.