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Gucci probe: Luxury brand's owner faces €1.4bn tax bill

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Customers wait outside a Gucci Store offering a 50pc discount in the Golden Eagle Shopping Centre in Shanghai, China. Photo: Getty Images

Customers wait outside a Gucci Store offering a 50pc discount in the Golden Eagle Shopping Centre in Shanghai, China. Photo: Getty Images

VCG via Getty Images

Customers wait outside a Gucci Store offering a 50pc discount in the Golden Eagle Shopping Centre in Shanghai, China. Photo: Getty Images

Kering SA, the French owner of the Gucci luxury brand, owes about €1.4bn to Italy in back taxes, according to the conclusions of a government audit.

The probe scrutinised business activities by Kering's Swiss subsidiary, Luxury Goods International, from 2011 through 2017, according to a company statement. Kering said it contests the findings of the Italian audit.

The probe has largely centred on Gucci, Kering's star brand and biggest revenue driver.

Italy's tax police carried out checks at Gucci's Florence headquarters and Milan offices in 2017, a source close to the investigation said. (Reuters)

Irish Independent