Kering has allegedly agreed to pay an amount close to €1.4 billion to settle a dispute with Italian authorities regarding a tax evasion scheme by its fashion brand Gucci. According to Reuters news agency, an agreement is likely to be signed in the first few days of May. As previously reported by ILM, the Italian tax authorities completed a tax audit and claim that Luxury Goods International (LGI), a Swiss subsidiary of French luxury conglomerate Kering, owes €1.4 billion to Italy in back taxes.

The French conglomerate could also risk having to defend itself on a new judicial front in Switzerland as a Member of Parliament from the Swiss Canton of Ticino has allegedly asked Switzerland’s Grand Council to set up a commission to investigate the ‘fictitious residences’ belonging to some senior managers of the French luxury group. Read more here.

Source: Reuters