Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Kering to settle Italian tax dispute over Gucci

French luxury goods group Kering has agreed to pay €1.25bn (£1.08bn) to Italian tax authorities to settle a dispute concerning its fashion brand Gucci. 

The company’s Swiss-based subsidiary, Luxury Goods International (LGI) has been under investigation for allegedly avoiding tax on Gucci’s Italian earnings from 2011 to 2017. 

In a statement the group said: ”The group has concluded today a settlement with the Italian Revenue Agency relating to claims vis-a-vis its Swiss subsidiary. The settlement will involve the payment of €897m in additional taxes, along with further payment for penalties and interest.”

The group would record a tax charge of around €600m (£5.2bn) in its 2019 accounts as a result, it said.

The settlement is the largest ever agreed with Italian tax authorities. 

Tags

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.