Tax saga over for Sophia Loren

The Oscar-winning actress has been vindicated by the Italian supreme court for tax infraction charges dating back to 1974.

Tax saga over for Sophia Loren

After nearly four decades of maintaining her innocence in a tax battle that dates back to 1974, Oscar-winning actress Sophia Loren has been vindicated by Italy's top court. The country's tax authorities argued that the 79-year-old Italian- born screen siren owed income tax on 70% of her 1974 earnings worth US$380,400, rather than the 60% her accountants calculated. The case, which Loren's lawyer described as "Kafkaesque," came to an end in October when the supreme court ruled in her favour.

Now worth an estimated US$75 million, the star was sentenced to 30 days in jail in 1980 for a previous tax infraction, in which she understated her 1970 income by five million lire (then worth about US$7,000). Loren served 17 days of the sentence in an Italian jail in 1982 after returning to her native country from her home in Switzerland. "This is an old saga of more than 30 years in which, finally, I was in the right," said Loren in an official statement.

About the Author

Tamar Satov

Tamar Satov is managing editor of CPA Magazine.

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