MILAN — Bulgari Group has settled its tax case with Italy’s internal revenue service, the Agenzia delle Entrate, and, while insisting it “remains certain of being in the right,” has agreed to pay a total of 42 million euros, or $57.2 million.
The company said the settlement will help “avoid a lengthy and costly confrontation over an issue whose interpretation is objectively uncertain.” Bulgari and the agency settled on a payment of 28 million euros, or $38.1 million, but the addition of taxes, interest and other fines brings the total amount to 42 million euros.
The Rome-based jeweler said that thanks to “substantial documentation” the revenue office “has recognized the actual existence and real operations of the companies outside Italy and has declared three of the four notifications that followed the fiscal enquiry entirely unfounded.”
The internal revenue service’s investigations were focused on alleged fraudulent earnings declarations and evasion of tax payments of around 3 billion euros, or $4.08 billion, starting from 2006, through a system of allegedly fictitious companies in the Netherlands and Ireland, set up in order to avoid paying taxes in Italy.
Bulgari declared that the foreign firms at issue were “real and genuine companies performing an undisputable strategic role for the group, employing about 300 employees of various profiles.” The police last year said that Bulgari allegedly “omitted to declare corporate income taxes in Italy for almost 3 billion euros in the period 2006-2011, as well as a regional tax on production for more than 1.9 billion euros [$2.5 billion]. Dividends that were unduly not taxed in the same period totaled more than 293 million euros [$381 million].” The corresponding amount of unpaid taxes totaled more than 46 million euros, or $62.6 million.
The only remaining claim by the tax office now refers to a number of operations that took place as part of a company reorganization in the 2006-2008 period and “only a part of the operations is to be challenged” by the authorities, said Bulgari. “In particular, the agency has not identified any false or artificial accounting and, while adopting regulations different from those of the group, it has recognized that at the time of those operations, the norms were of difficult and uncertain application.”
The company concluded by expressing “faith that the documents acquired in the administrative area will contribute to a positive conclusion of the criminal procedure and that no felony has taken place.”
Last March, Bulgari said it was going to disprove allegations of fraudulent earnings in Italy, and also accused Italian authorities of waging a campaign in the media to destabilize the Roman jeweler by seizing assets.
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews
“Stranger Things” is getting a new cast member for season 2. Meet @sadiesink_, the 15-year-old who will be joining the Netflix series for its new season. You may recognize her from “The Glass Castle” with Brie Larson and Woody Harrelson, but the Texas native’s next role goes in an entirely different direction. She describes her character, Max, as “a rough and tumble skater girl [who] becomes friends with the boys at school.” The second season debuts on October 27. (📷: @jgreenery) #wwdeye
Amid the Harvey Weinstein controversy, there’s another sector that’s being put under the spotlight for sexual abuse: the modeling industry. While rumors about abuse and sexual harassment of female and male models — and the photographers, agents and others who perpetrated it — have circulated within the fashion world for years, model @cameronrussell started posting stories from models on Instagram last week about abusive situations they’ve encountered — from sexual harassment and molestation to attempted rape. Over 75 have weighed in so far. Read more on WWD.com. Link in bio. #wwdnews
To celebrate its 16th anniversary, @dylanscandybar tapped designers and celebrities to create mosaics out of candy. The mosaics will be auctioned off to support the philanthropic cause of each participant’s choice. Pictured here is the mural created by @aliceandolivia's Stacey Bendet. For a first look at some of the other artwork being unveiled tonight, go to WWD.com. #wwdeye
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye