Sources confirmed the amount to Reuters, but Kering added that it would have “no impact on the group’s results in 2022 or on its recurring tax rate in future years”.

The group said: “In the spring of 2019, given the rapid changes in its business environment, its strong international growth and some uncertainties of Italian legislation, Bottega Veneta proactively made contact with the Italian Revenue Agency to discuss its tax position.”

Sources said that revenue for Bottega Veneta was booked through Kering’s Swiss-based subsidiary Luxury Goods International but Italian authorities argued that the tax should have been paid in Italy, not Switzerland.

The payment covered the fiscal years 2012 to 2019 and, reportedly, a criminal investigation for tax evasion is ongoing with the Milan authorities.

Kering paid €1.25 billion to Italian tax authorities three years ago in a similar dispute centred around the Gucci brand.

Source: Reuters