Kering owes Italian tax authorities 1.4 billion euros

According to the Italian tax authorities, luxury fashion group
Kering owes the country an estimated 1.4 billion euros from the period
between 2011 and 2017. An audit report was delivered today and still
needs to be reviewed before a final decision can be made.

The claim states that the Swiss-based Kering subsidiary Luxury
Goods International conducted business in Italy, for which it owes a
payment of corporate taxes.

Gucci, which is a part of the Kering group, is at the center of the
investigation. The Italian luxury label was under investigation by
Milan authorities in November for a 1-billion euro tax evasion case.
At the time, authorities suspected Gucci elected to pay taxes on sales
generated in Italy to a country with a more favorable tax rate.

Kering told WWD that it “is confident about the proceedings
currently under way and will continue to fully cooperate in complete
transparency with the Italian tax authorities in order to defend all
its rights.” The luxury group also “challenges the outcome of the
audit report both on the grounds and the amount.”