Italian Film Chief Quits as Tax-Credit Funds Trail Leads to Double-Murder Suspect

Borrelli’s sudden exit heightens scrutiny of Italy’s prized 40 % film-tax credit after investigators link a “phantom” production to a suspected double murderer.

Nicola Borelli

Nicola Borrelli, the longtime head of the Italian Ministry of Culture’s Cinema and Audiovisual department, resigned late Wednesday after revelations that his office approved an €863,595 tax credit in 2020 for a film project linked to Francis Kaufmann—an American now awaiting extradition on suspicion of killing his partner and 11-month-old daughter in Rome’s Villa Pamphili park last month.

Prosecutors are examining whether the credit for the never-made feature Stelle della Notte was merely authorised or actually paid, and whether false documents were filed to secure the benefit. Culture Minister Alessandro Giuli told parliament that investigators had already seized files from the ministry and that he had “personally accompanied” police to ensure full cooperation, insisting the directorate had “no direct relationship” with Kaufmann. Giuli condemned the episode as an “unforgivable distraction” and a legacy of lax oversight that “allowed scammers—perhaps worse—to profit at taxpayers’ expense.”

The scandal has intensified debate over Italy’s generous audiovisual tax-credit scheme, which reimburses up to 40 percent of eligible local spending and has attracted major international shoots but strained government coffers.

Delays in reforming the system had already angered producers; in May more than 100 prominent filmmakers signed an open letter warning of a “systemic crisis” and urging Giuli to open talks with unions and guilds. They said uncertainty over future credits had left independent productions “without work or income” and accused the ministry of attacking critics rather than listening to them.

Kaufmann, who allegedly used the alias “Rexal Ford” and a fake U.S. passport to set up Maltese outfit Tintagel Films, was arrested on the Greek island of Skiathos two weeks after the bodies were discovered; Italian investigators say his fingerprints were found on a bag covering one of the victims and that security cameras placed him with the family days earlier. Greek courts are expected to rule on Italy’s extradition request by mid-July.

Borrelli, a ministry fixture since 2005, offered no comment, but Giuli accepted the resignation “with esteem for work done so far.” For industry insiders, the departure underscores mounting pressure on the government to tighten due-diligence checks and restore confidence in a funding tool many regard as vital.

Alessandro Usai of producers’ lobby ANICA called for “clear rules and certainty in timing” to keep cameras rolling. Whether Borrelli’s exit marks a turning point will depend on how quickly authorities can both safeguard public money and reassure filmmakers that Italy remains open for business.

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