Pavarotti Forced To Abandon Show To Attend Second Tax Evasion Hearing

by Ulrika Lomas, Tax-News.com, Brussels

16 August 2001

Luciano Pavarotti has been forced to abandon a concert in St Paul next month due to a pressing prior engagement with the Italian tax authorities. Pavarotti stands accused of evading more than 40 billion lira ($20 million) in taxes, and despite his claim that he is a 'citizen of the world' who pays taxes where he sings, the rotund tenor came to an agreement with the Italian Finance Ministry last year whereby he paid $5 million immediately, with further installments totalling $7 million to be paid over a two year period.

However, this failed to satisfy the local authorities who claimed that the 11 companies, six investment accounts, numerous houses, horses and family members that he has located in Modena clearly indicated that Pavarotti should be resident there for taxation purposes, as opposed to in Monte Carlo, which he claims is his permanent base.

Tibor Rudas, the singer's manager claims that the mix-up was an honest mistake. 'When we originally planned the St. Paul concert for September, I neglected to consider the maestro's obligation to the Italian court,' he explained. However, you would have thought that the date might have stuck in his mind, given that the original hearing in May was adjourned after only half an hour. It is thought that the prosecution will call some 20 witnesses, including opera impresarios and managers, to testify about their financial dealings with the singer.

In a separate case, it was announced in June that the maestro's fiancee and former secretary, Nicoletta Mantovani is under investigation by the Italian tax authorities regarding box office receipt irregularities from the annual 'Pavarotti and Friends' concerts of which she is artistic director.

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