Overview

• The Ministry of Culture has revoked approximately €60 million of credits granted to Sipario Movies and blocked a total of €88 million in film tax relief nationwide.
• A tribunal-appointed judicial administration report concluded that Sipario’s prior financial statements resulted from systematic illicit acts to inflate assets and claim undue tax credits.
• Judicial administrators have dissolved Sipario Movies and determined that the company lacks realizable assets to reimburse the revoked credits.
• Guardia di Finanza inspections uncovered cascaded invoicing schemes that inflated costs for 2D-to-3D transcodification and animation services by hundreds of millions of euros.
• Producer Andrea Iervolino is appealing the revocation at the TAR and pursuing civil and criminal actions, arguing the decision relied on disputed allegations by a former liquidator.