French luxury group Kering is rumoured to settle an Italian tax dispute for 1.3 or 1.4 billion euros, closing a case of alleged tax evasion by its subsidiary Gucci.
1.3 to 1.4 billion euros
Kering would settle the dispute for 1.3 to 1.4 billion euros, three sources revealed to press agency Reuters. This would be the largest tax settlement for the Italian tax authorities, but still would save Kering from an additional 500 million euros in interests and fines for late payments. The sources claim the settlement would be signed in early May.
The French luxury group that was formerly known a Pinault-Printemps-Redoute (PPR) and owns brand like Yves Saint-Laurent, Balenciaga and Alexander McQueen, only confirms that it is holding discussions in an "open and constructive environment", but emphasises there is not yet an agreement, about any amount whatsoever.
The alleged tax fraud went on from 2000 to 2016 and meant that Gucci had certain sales taxed in Switzerland rather than in Italy. Late 2017, tax authorities searched the brand's offices in Milan and Florence. Until now, Kering had always maintained it had done nothing wrong.