It was almost a year ago that Gucci’s head offices were raided after the luxury brand was suspected of tax evasion. Now it seems the case may finally go to trial.
Milan officers recently finished up their investigation into the company and now allege that the brand owes the Italian tax authorities around €1 billion (over $1.5 billion Canadian) for revenues booked between 2010 and 2016.
They suspect that the company was paying taxes on profits generated within Italy in a different country that had a more beneficial taxing system. For example, Gucci is part of the French luxury group Kering. Kering uses the Swiss company, Luxury Goods International (LGI), to manage the distribution and logistics of many of its brands. Prosecutors are essentially arguing that Gucci’s revenues should be taxed in Italy, not in Switzerland.
A source claimed that Gucci’s Chief Executive, Marco Bizzarri and the company’s former CEO, Patrizio Di Marco are the main subjects of the investigation and while their lawyers have yet to comment on the situation, Kering has released an official statement. The company said they were “confident about the correctness and transparency of its operating mode” and that they were “cooperating actively with the competent authorities.”
A judicial source has revealed that in the wake of the investigation wrapping, there’s been a formal request for trial. Unless the parties can reach a settlement or new evidence emerges, the case will be sent to court in 20 days.
Hopefully this news will not affect our ability to purchase totally impractical hiking boots or crystal-embellished loafers in the near future.
The post Gucci May Face Trial Following Alleged Tax Evasion appeared first on FASHION Magazine.
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