Gucci Of­fices ‘Raided’ in Tax Eva­sion Probe

Shoes & Accessories - - The Month That Was -

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.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.