Kering allegedly made offshore payments to managers

Europe
Published:  12 February, 2021

The French conglomerate houses half a dozen of financial subsidiaries in Luxembourg, which it has allegedly used to make offshore remunerations.

According to French newspaper Le Monde, Kering has used its subsidiaries, located in Luxembourg, to make offshore payments to certain managers over several years. Following an OpenLux investigation of the Grand Duchy’s fiscal system undertaken by a number of European newspapers, including Le Monde, the French newspaper claims that Kering implemented an “offshore payment system,” through which it “paid tens of millions of euros in salaries to its managers through the intermediary of a Luxembourg-based company called Castera.”

Castera would have paid €78 million in salaries to unknown recipients in 2018, contributing to less than 1% in social charges paying compared with the 10% they would have paid if they had made the payment from France. Many international companies have subsidiaries in Luxembourg, including Zara and Lee Cooper. Allegedly, Kering transferred its subsidiary from Luxembourg to the Netherlands in 2019.

Sources: La Monde/CCP Luxury