Gucci Offices ‘Raided’ in Tax Evasion Probe
Gucci has confirmed that it is at the center of an investigation regarding tax evasion.
In a statement, the Italian luxury fashion house verified reports that its headquarters in Florence and Milan were audited by local tax police.
“Gucci confirms that it is providing its full cooperation to the respective authorities and is confident about the correctness and transparency of its operation,” the Keringowned brand further noted.
According to Reuters, a source with direct knowledge of the matter said Milan prosecutors suspected Gucci may have paid taxes on profits generated by sales in Italy in another country with a more favorable tax policy.
After a period of sluggishness, under the leadership of president and CEO Marco Bizzarri and creative director Alessandro Michele, Gucci — which brings in the lion’s share of revenues of Kering — has made a marked transformation.
The rebound has been apparent in the brand’s earnings: In the most recent quarter, the label’s revenues gained 49.4 percent, $1.8 billion.
Tax issues are seemingly becoming more prevalent in the luxury fashion space. Gucci joins a growing list of upscale fashion houses — including Prada, Bulgari and Georgio Armani — that have had brushes with the Italian tax authorities.