Gucci due in court over tax avoidance

Italy
Published:  30 November, 2018

In 2017, Milan prosecutors had accused the Italian luxury label of declaring tax on profits in Switzerland, which has a more favourable tax regime, instead of Italy.

Reportedly, the specialist financial crimes unit in Italy has completed the investigation and the case is to be sent to court before the end of December, unless the both parties agree on a settlement or new evidence emerges. Marco Bizzarri, Gucci’s current Chief Executive and Patrizio Di Marco, the label’s former CEO, are said to be under investigation as part of the case. French luxury holding Kering, which owns Gucci, said it was “confident about the correctness and transparency of its operating mode, and is cooperating actively with the competent authorities”.

Allegedly, Gucci’s tax evasion amounts to about €1 billion for revenues booked through Luxury Goods International (LGI), a Swiss-based company that manages the distribution and logistics platform for most of Kering’s luxury brands, between 2010 and 2016.

Sources: Retail Gazette/Reuters