Gucci logo is seen in a store at Fiumicino airport in Rome, Italy, April 11, 2016. (Reuters)
- Amazon pulls the plug on New York headquarters Read More
- Late interest payments from Central Bank Read More
- Red win again at CP Read More
- England upstage Gayle Read More
- Wanted: A more efficient airport Read More
- Low-hanging fruit for all Read More
- Actor Jussie Smollett arrested, accused of lying to Chicago police Read More
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)