The Italian police raided Gucci’s offices in Milan and Florence, looking for evidence of tax avoidance. The fashion label admitted there was an investigation and that it is fully cooperating.
Transfered revenue to Switzerland
“Following an article in an Italian paper about the fiscal police’s raid on Gucci’s offices in Milan and Florence, Gucci confirms it is collaborating with the authorities and has confidence in the legality and transparency of its operations”, the luxury group said.
The investigation apparently revolves around the way Gucci reported its Italian activities: for years, it passed through Switzerland, which may have cost the Italian treasury up to 1.3 billion euro. A former Gucci employee turned whistleblower and informed the court of this alleged tax avoidance.
If proven guilty, that would be devastating blow. The company achieved a nearly 50 % organic turnover growth in the third quarter, which resulted in a 1.5 billion euro turnover.
Just like Prada
It is not the first time an Italian fashion label has run into trouble with the local tax revenue service. Prada was already forced to pay a 470 million euro fine for similar tactics in 2013.
The Italian tax revenue service also investigated Apple, Google, Amazon and Facebook for the same tactic and the first two were charged with a fine exceeding 300 million euro.