Top Italian court sides with Loren in old tax dispute

05:00 AM, Oct 23, 2013

Italian actress Sophia Loren on red carpet in Rio de Janeiro in November 2012. Felipe Dana AP/

ROME (AP) — Every so often, the tax man loses. Now Italian actress Sophia Loren is the winner — and it only took about four decades.

Loren, 79, who once served time in an Italian jail for tax evasion, has been handed a victory in a nearly 40-year-long battle over back taxes.

The Rome-based Court of Cassation ruled Wednesday the movie star and beauty icon was right when calculating tax owed on her 1974 income.

Loren’s tax experts, applying one of Italy’s not-infrequent tax amnesties, calculated that she owed tax on 60 % of her income that year, but tax officials insisted she should have paid tax on 70 % of her taxable income. The top court decided that Loren was right.

In separate tax dispute, Loren voluntarily returned to Italy in 1982 to be jailed, serving 17 days of a 30-day sentence for tax evasion. She said then her deceased tax preparer had erred.