A government audit in Italy has found Kering SA the owner of Gucci Luxury Brand that he owes Italy $1.6 billion in back taxes.
The probe conducted from 2011 to 2017 on Kering’s Swiss Subsidiary and Luxury Goods International showed the taxes even though Kering contests the findings.
The probe was first opened by Italian authorities back in 2017 focusing on the Swiss Subsidiary of the Paris-Based company.
John Guy an analyst with Mainfirst bank said that the company might pay additional fines and that the company has been provisioning for the liability so the figure might go down.
The auditor’s report is set to be reviewed by Italy Revenue Agency before making a final conclusion.
Kering has however stated that he does not have the specific information therefore he cannot make a provision of the tax exposure even though he has strict monitoring of his tax risks.
French media reports also indicate that the company billed for business carried out in other countries with lower taxes than it would have in Italy.