89 million fine for oil company that owns Carbonell and Koipe for customs inspection in Italy

Italian justice is demanding 89 million euros from the oil group Deoleo, owner of brands such as Carbonell or Koipe, for customs clearance of two of its subsidiaries. As explained by the National Securities Market Commission (CNMV), through its subsidiary Carapelli Firenze, the company “received a notification from the Italian court of second instance of an unfavorable decision” regarding the tax claim.

Deoleo told the stock market manager that “the dispute is caused by a customs audit initiated in fiscal year 2014 by customs” of its subsidiary.

“The procedure used by Carapelli Firenze during the period under investigation was widely used by multinational companies and was inherited” by the Spanish company after purchasing the business in Italy.

In particular, it explains that the Customs Inspectorate questioned the “customs processing contract” that “was signed by Carapelli International,” a company now dissolved, and the aforementioned Carapelli Firenze. “Under this contract, Carapelli Firenze was responsible for the processing of olive oil coming from outside the European Union, taking advantage of a number of recognized tax incentives in Italy in accordance with Community customs rules,” he suggests. “Customs argued that Carapelli Firenze should not have benefited from the relevant tax treatment because, in its view, Carapelli International lacked decision-making autonomy.”

Now Deoleo, through Carapelli Firenze, is going to request a suspension of the payment of the claimed amount, which amounts to approximately 89 million euros and includes an estimated interest of 26 million euros. In addition, he indicates that he will appeal the verdict to the Court of Cassation. “The company confirms its legal position,” he told CNMV, and “has strong arguments to support its defense to win the lawsuit.”

He reasons that “the argument put forward by the Customs Service regarding the necessary decision-making autonomy of Carapelli International is based neither on Italian customs rules nor on European Union rules, and there are no judicial precedents in the European Union. consistent with the arguments used by Customs.” For this reason, he assures that he will “ask the Court of Cassation to issue a preliminary ruling to the Court of Justice of the European Union” and “if the position defended by the Customs Service is confirmed, the business of the international groups in Europe will be stopped.” had a significant impact.”

It also assures the CNMV that “Carapelli International was an economically sound organization that had the material resources, personnel and operational capabilities necessary to sign and fulfill the obligations arising from the processing commission contract. In fact, Customs recognized the validity of the contract processing agreement in their inspection and assessment documents,” he concludes.

As for the impact of the fine, Deoleo lost $34 million in fiscal 2023 due to rising oil prices last year.