Italian tax authority to probe Agnelli finances

ROME, Aug 13 (Reuters) - The Italian tax authority has opened an inquiry into allegations that members of the Agnelli family, which controls Fiat SpA (FIA.MI), are holding undeclared funds abroad, the head of the authority confirmed on Thursday.

The probe has been launched due to statements made during a legal case brought by Margherita Agnelli de Pahlen against her mother, Marella Agnelli, and three Agnelli family advisors, arguing that she had not received her due inheritance after the death of her father, the former Fiat chairman Giovanni Agnelli, who died in 2003.

"The inquiry has been opened after various reports by the heirs on the existence of assets abroad," tax authority Director Attilio Befera said in response to a report on Mediaset's TG5 evening news programme on Wednesday.

The TG5 report alleged that between 1 billion euros 2 billion euros ($1.43 billion-$2.85 billion) were being held abroad by the Agnelli family and they could face an even larger fine.

"The diatribes on the inheritance (exchanged between family members) has been noted for months by the authority (due to) the reports of possible assets abroad not declared to the authority. As always in these type of cases an inquiry has been opened," Befera said.

A spokesman for Marella Agnelli said she had not commented and Margharita Agnelli De Pahlen's lawyers were not immediately available for comment.

The Italian parliament at the end of June approved tighter rules on assets held in tax havens, including financial sanctions.

Befera said on June 30 that any Agnelli family assets which were part of the family dispute and held in tax havens could be covered by the new rules.

A Turin court in July said it would not hear Agnelli de Pahlen's case. The court will reconvene on Nov. 12 to give details about its decision.

According to an unsourced report in Thursday's Il Sole 24 ore, Agnelli de Pahlen's lawyers would have told the court that her late father had hidden 1.46 billion euros abroad.

The report said part of her case was that instead of taking 1.75 billion euros in taxable dividends in 1998 from a Luxembourg-based holding Exor, the Agnelli family set up a foreign company to buy Exor and therefore avoided Italian tax. ($1=.7008 Euro) (Reporting by Giselda Vagnoni; writing by Nigel Tutt; editing by Karen Foster)