Pavarotti's Girlfriend Implicated In Tax Probe

by Ulrika Lomas, Tax-news.com, Brussels

08 June 2001

Luciano Pavarotti and his bride-to-be, Nicoletta Mantovani could be forgiven for feeling a little victimised. The maestro's former secretary has been drawn into a tax investigation of the handling of the proceeds from the star studded charity concerts that she organises in his home town every year.

Public prosecutors in Modena, where the singer is due to appear in court in September in the latest stage of a separate long running tax evasion investigation, are examining the administration of box office receipts from the annual Pavarotti and Friends concerts of which Ms Mantovani is the artistic director. This is said to be part of a wider investigation into the Pavarotti International Horse Show, a company owned by the singer which runs the concerts and also a yearly equestrian event.

The prosecutor heading the enquiry, Manfredi Luongo commented recently: 'From what we can tell so far there is a lack of transparency in the way the company is run. The allegation is tax evasion, which in this case carries a maximum sentance of three years in jail.' Investigators have accused the company of failing to declare nearly 63 billion lira received in ticket sales between 1998 and 2000, and in the process allegedly underpaying over 15 billion lira in tax. There have also been questions raised about Mantovani's substantial salary, and payments which she made to her father.

However, the lady in question denies all allegations. 'Why on earth should charity be taxed?' She asked.'We didn't report the revenues in the accounts because we pass on the money directly to the organisation that oversees the projects for which we raised the funds.'

Pavarotti himself stands accused of evading more than 40 billion lira (approximately $20 million) in taxes between 1989 and 1995, but claims that the centre of his interests is in Monte Carlo, and that he should not therefore have to pay tax in Italy on his worldwide income. Despite having reached a settlement with the Italian tax authorities last year, the maestro is still being doggedly pursued by investigators in his home town. The way things are going for the couple at the moment, it looks set to be a very long engagement!

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