Kering to Pay $206 Million to Settle Italian Tax Probe
Kering to Pay $206 Million to Settle Italian Tax Probe
(Bloomberg) -- Luxury-goods group Kering SA agreed to pay 187 million euros ($206 million) to settle an Italian probe on alleged tax evasion at its Bottega Veneta unit, according to people familiar with the matter.
Italian financial police found that Bottega Veneta used two Swiss affiliates to avoid paying taxes in Italy, the people said, asking to not be named because the matter isn’t public. The investigation is part of a broader probe into Kering’s fiscal practices in the country that led to a previous settlement over Gucci brand, the people said.
The payment will have no impact on Kering’s 2022 results nor on its tax rate in future years, the luxury-goods company said by email, without confirming the amount. Bottega Veneta contacted Italian tax collectors in 2019 to discuss its tax position, and the agreement is the result of those talks, Kering said in an e-mailed statement.
Milan prosecutors released a statement on Friday about the settlement without mentioning the firms involved.
Kering added that the agreement “will have no impact on the group’s results in 2022 or on the normative recurring tax rate in future years.”
The French luxury-goods maker agreed to pay 1.25 billion euros in 2019 to settle an investigation of its Gucci unit’s tax payments from 2011 to 2017. After the settlement, the country’s tax agency started broadening its focus, documents reviewed by Bloomberg at the time of settlement showed.
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