The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
MILAN, Italy — Milan prosecutors have wrapped up their probe into alleged tax evasion of around €1 billion ($1.13 billion) by fashion group Gucci, paving the way for a formal request for a trial, a judicial source said on Tuesday.
The case will be sent to court unless in the next 20 days the parties agree on a settlement, or new evidence emerges.
The prosecutors suspect Gucci, which is part of French luxury group Kering, may have paid taxes on profits generated by sales in Italy in another country with a more favorable tax regime.
They allege that Gucci owes the Italian tax authorities around €1 billion for revenues booked in the years between 2010 and 2016.
ADVERTISEMENT
The prosecutors allege Gucci revenues booked through Luxury Goods International (LGI), the Swiss company that manages the distribution and logistics platform for most of Kering's luxury brands, should be taxed in Italy and not in Switzerland.
Gucci chief executive Marco Bizzarri and former chief executive Patrizio Di Marco are under investigation in the case, the source added.
The lawyers for the two executives could not immediately be reached for comment.
Gucci's parent Kering said it was "confident about the correctness and transparency of its operating mode, and is cooperating actively with the competent authorities."
By Emilio Parodi and Agnieszka Flak; editor: Richard Balmforth.
Related Articles:
[ Gucci and Guess End Nine-Year Trademark DisputeOpens in new window ]
[ Gucci Wins Latest Round in Legal Battle With Forever 21Opens in new window ]
From analysis of the global fashion and beauty industries to career and personal advice, BoF’s founder and CEO, Imran Amed, will be answering your questions on Sunday, February 18, 2024 during London Fashion Week.
The State of Fashion 2024 breaks down the 10 themes that will define the industry in the year ahead.
Imran Amed reviews the most important fashion stories of the year and shares his predictions on what this means for the industry in 2024.
After three days of inspiring talks, guests closed out BoF’s gathering for big thinkers with a black tie gala followed by an intimate performance from Rita Ora — guest starring Billy Porter.