Kering contests the assertion and says the audit report will now be reviewed by the Revenue Agency unit in charge of assessing the conclusions of the report which shall then make its final determination. “Kering challenges the outcome of the audit report both on the grounds and the amount. We are confident about the proceedings currently underway and will continue to fully cooperate in complete transparency with the Italian tax authorities in order to defend all its rights”, said the Group in a statement.

At this stage of the proceedings, Kering says it does not have the necessary information to record a specific accounting provision based on a reliable estimate of the tax exposure. The Group confirms that it has implemented a strict monitoring of its tax risks and has adopted a prudent approach in the appreciation of its tax exposures, and notably those related to the transfer pricing policy applied by the Group.

LGI, a Swiss subsidiary of Kering, allegedly conducted business activities in Italy which should have resulted in payment of Italian corporation taxes.