The Italian authorities assessed a tax debt of the trading house of Gucci in $1.6 billion (€1.4 billion), according to Bloomberg, citing data from the audit, commissioned by the government.
The Italian authorities conducted a thorough investigation into the taxes of Gucci in 2011 – 2017, focusing on the activities of the Swiss company Luxury Goods International, which is a subsidiary of holding company Kering, which owns renowned brand.
The Agency cites the opinion of analysts at Citi Group, which calculated that in the end, Kering can be faced with paying up to €2 billion euros, since you have to pay not only tax arrears, but the penalties.
The auditor’s report will be considered by the tax authorities of Italy, who will then make a final conclusion.
In December 2017, the Italian newspaper La Stampa reported that law enforcement bodies of Italy have raided the company’s offices Gucci because of allegations of tax evasion. The financial police believed that the brand shied away from paying taxes to the Italian budget in the next few years, reflecting its sales in Italy, reporting to Swiss units.