According to press reports, the company is going to sign an agreement with the Italian Revenue Agency to regularize its fiscal position in the country.
Kering reportedly is going to pay a sum exceeding 1 billion euros to the Italian Revenue Agency, which investigated the French luxury conglomerate’s tax payments related to the sales in Italy of Gucci products between 2011 and 2017.
As Kering confirmed in a statement released at the end of January, the investigations identified an alleged tax evasion of 1.4 billion euros. According to the Italian tax authorities, in distributing Gucci products in Italy through a directly operated Switzerland-based company, Kering would have intentionally avoided the payment of taxes in Italy.
In the same statement, Kering, which expressed its intention to continue cooperating with Italian authorities, rejected the accusations.
On Thursday, the French luxury conglomerate said in a statement that “as stated on Jan. 25, Kering holds regular discussions with the Italian tax administration on this topic. Several meetings took place in an open and collaborative climate. At this stage, no agreement has been reached yet on any specific figure.”
The possibility of a settlement was reported by Italian newspaper Il Sole 24 Ore and Reuters.
If Kering does settle for that amount, it would be one of the biggest-ever settlements with the Italian tax authorities, which have chased fashion designers and companies for more than a decade for allegedly underpaying their taxes. Patrizio Bertelli and Miuccia Prada reportedly paid 470 million euros to settle their case and have charges dismissed, while Leonardo Del Vecchio is said to have paid $185 million. In addition to celebrities ranging from Sophia Loren to the late Luciano Pavarotti, Giorgio Armani, Valentino Garavani, and the Bulgari family, among others, have had their share of fiscal troubles and either settled or had their cases dismissed — which was the situation in the cases of Roberto Cavalli, Matteo Marzotto and Stefano Gabbana and Domenico Dolce.