Berlusconi Leaves UK Lawyer Out In The Cold In Tax Evasion Case

by Robert Lee, for LawAndTax-News.com, London

21 February 2006

Italian Prime Minister Silvio Berlusconi sought to distance himself at the weekend from a British lawyer who is accused of taking bribes from the Italian leader to help him cover up alleged tax evasion through his media company.

Speaking on Sunday, Berlusconi dismissed the allegations of prosecutors in Milan who last week concluded an investigation into the role of the Prime Minister, British lawyer David Mills - the husband of Tessa Jowell, the Secretary of Culture in Tony Blair's cabinet - and 12 other defendants in irregularities concerning the acquisition of television rights from a Hollywood company through an offshore firm.

It is alleged that the price paid for the TV rights was artificially inflated as part of a scheme to avoid Italian taxes. Mr Mills, who represented Berlusconi's business interests in the UK for almost two decades, has also been accused of accepting a GBP350,000 "gift" from Berlusconi to cover up the leader's tax avoidance activities.

However, according to Berlusconi, the investigation into Mr Mills and himself is nothing more than a politically motivated smear campaign by left-wing opponents ahead of April's elections.

"As always when elections approach, the judiciary strikes, regular as a clock," Berlusconi stated on Sunday.

Berlusconi is no stranger to accusations of illegal business practices, and the new charges come soon after he was cleared of false accounting at Fininvest, a family holding company chaired by his daughter, between 1989 and 1995. However, the charges have not prevented him from becoming one of Italy's longest-serving post-war leaders.

Berlusconi's denial of any wrongdoing came after Mills revealed to the UK media at the weekend that he had confessed to charges that he accepted bribes to protect the Prime Minster. However, Mills has said that his confession was signed after ten hours of intense questioning in which prosecutors used "very harsh" tactics.

Nonetheless, prosecutors have produced as evidence a letter written by Mills to his accountant Bob Drennan in February 2004 which reportedly states that while he told "no lies," he was forced to "turn some very tricky corners" in order to help save "Mr B from a great deal of trouble".

Prosecuting magistrates in Milan have given notice of their intention to charge Mr Berlusconi with making illegal payments to Mr Mills, who himself faces up to eight years in jail if found guilty.

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