Ferrari chairman John Elkann has agreed to undertake a year of community service.

Ferrari chairman John Elkann has agreed to undertake community service and pay the Italian tax authorities £158million alongside his siblings to settle a tax dispute. Elkann had been the subject of a criminal investigation following an inheritance from his grandmother.

Elkann, 49, is the grandson of Gianni Agnelli, who died in 2003 and was one of the richest men in Italian history after becoming the principal shareholder of Fiat. The tax dispute relates to the estate of Elkann’s grandmother Marella Caracciolo, who had been married to Gianni. Marella passed away in 2019 at her home in Turin at the age of 91.

Elkann and his siblings Lapo and Ginevra will jointly pay the tax authorities £158m. The Ferrari chairman will also have to propose an institution where he can do his community service.

The community service could be undertaken at a centre for the elderly, an association that helps drug addicts, or another institution with a social-support function.

Prosecutors have given their approval to the agreement and asked the judge to drop the criminal case against Lapo and Ginevra.

The agreement must now be ratified by a judge, with no admission of liability attached.

The family’s lawyer, Paolo Siniscalchi, said in a statement: “John Elkann’s request for probation must be viewed in this context and does not entail, just as the settlement with the tax authorities does not, any admission of responsibility.

“If this request is granted, the proceedings against him will be suspended, and upon the successful completion of the probationary period, will conclude with a ruling extinguishing all the charges for which John Elkann is currently under investigation.

“This outcome would mirror that of his siblings Ginevra and Lapo, for whom dismissal of charges has been requested.”