Tax Charges

Milan’s chief prosecutor is seeking to bring charges against Alessandro Profumo, former CEO of Unicredito, three Barclays employees and sixteen other people in relation to a tax dodge.

The alleged scheme relates to Unicredito using a scheme designed by Barclays which was based in Luxembourg. The mechanism focuses on the taxation of cashflows which are either treated as dividends or interest. The distinction is the key issue.

A court will need to decide if a trial can go ahead.