Fashion

Kering agrees to pay 187 million euros in Bottega Veneta tax dispute-source


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Reuters API

Published



April 1, 2022

French luxury goods group Kering agreed to pay almost 187 million euros ($207 million) to settle a dispute with the Italian tax agency centered on their fashion brand. Bottega Venetathree sources with direct knowledge of the matter said Friday.

In a statement, the Milan prosecutor referred to a tax investigation against a Swiss company, part of an international luxury goods group, which allegedly operates in Italy to produce and distribute a Italian brand, without naming the specific company.

Kering was not immediately available for comment.

The Italian leather goods maker’s revenue was recorded through Kering’s Switzerland-based subsidiary Luxury Goods International, sources said, and Italian prosecutors and tax authorities argued that the amount the tax should have been paid in Italy, not Switzerland, the sources said.
Luxury Goods International paid 186.8 million euros to settle the tax lawsuit, covering the financial years 2012 to 2019.

Separately, the Milan prosecutors’ tax evasion investigation is still underway, sources said.

Three years ago, Kering reached an agreement with Italian tax authorities, paying a record 1.25 billion euros to settle a similar dispute centered on its flagship fashion brand. Gucci.
Milan prosecutors have in the past investigated US tech giants like Apple, Amazon and Facebook on taxes, allowing Italy to net several billion euros in fines and taxes.

In previous cases, after an agreement between the companies and the Italian tax authorities was signed, prosecutors closed the criminal investigation by dismissal or settlement.

© Thomson Reuters 2022 All rights reserved.



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