• Today
    December 13

  • 03:09 PM

Milan prosecutors wrap up Gucci tax probe, trial likely

REUTERS,

Added 28 November 2018

gucci-logo-112818

Gucci logo is seen in a store at Fiumicino airport in Rome, Italy, April 11, 2016. (Reuters)

MILAN − Milan prosecutors have wrapped up their probe into alleged tax evasion of around 1 billion euros (US$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 favourable tax regime.

They allege that Gucci owes the Italian tax authorities around 1 billion euros for revenues booked in the years between 2010 and 2016.

The prosecutors allege Gucci revenues booked through Luxury Goods International (LGI), the Swiss-based 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 CEO 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”. (Reuters)

JOIN THE DISCUSSION

Dos and Donts


Welcome to our discussion forum here on nationnews.com. We encourage lively debate, but we also urge you to take note of the following:

  • Stay on topic – This helps keep the thread focused on the discussion at hand. If you would like to discuss another topic, look for a relevant article.
  • Be respectful – Meeting differences of opinion with civil discussion encourages multiple perspectives and a positive commenting environment.
  • Do not type in capitals – In addition to being considered “shouting” it is also difficult to read.
  • All comments will be moderated – Given the volume of comments each day, this may take some time. So please be patient.
  • We reserve the right to remove comments – Comments that we find to be abusive, spam, libellous, hateful, off-topic or harassing may be removed.
  • Reproduction of comments – Some of your comments may be reproduced on the website or in our daily newspapers. We will use the handle, not your email address.
  • Do not advertise – Please contact our Advertising Department.
  • Contact our Online Editor if you have questions or concerns.
  • Read our full Commenting Policy and Terms of Use.
comments powered by Disqus

POLL

Do you think that trade unions have done enough to ensure retrenched workers are not disadvantaged?

Yes
No

FRONT COVER OF TODAY'S NEWSPAPER

CARTOON

INSTAGRAM