MILAN — The Italian tax authorities are said to be targeting another luxury company: Bulgari SpA.
This story first appeared in the January 2, 2013 issue of WWD. Subscribe Today.
According to Italy’s newspaper Il Corriere della Sera, the Guardia di Finanza, an Italian police force under the authority of the national minister of economy and finance, is accusing the Rome-based jewelry firm of evading tax payments of more than 70 millions euros, or $92 million at current exchange rates.
The inquiry is focusing on the last few years and in particular on 2011, when LVMH Moët Hennessy Louis Vuitton took control of Bulgari in a cash-and-share swap valued at more than $6 billion.
The police reportedly alleged that Bulgari is an Italian organization but that some of its revenues have been redirected to Luxembourg and Ireland through holding companies instead of being declared and taxed in Italy.
The facts at issue may have relevance under a criminal perspective as well.
Bulgari executives could not be reached for comment on the reported allegations.