Italy’s Inland Revenue is looking into Kering. Yesterday, at the closing of the stock markets, the French multinational corporation made an official announcement. Reading through the press release, they made public that “regarding the tax investigation, which dates to 2017, in Milan, Italy’s tax authorities have carried out several checks, which have come to completion. Today they have handed out a report, according to which Luxury Goods International (LGI), a Swiss company controlled by Kering, ran some business activities, in Italy, subsequently implying Italian taxes payment”. “Kering firmly contest such statement”, claim back from Paris, “which is about financial revenues from 2011 to 2017: the estimated tax amount, which can apply to such earnings, amounts to around 1,4 billion euros”. As you know, the story is allegedly about some revenues, on which taxes were not paid (therefore getting around Italy’s inland revenue through the Swiss subsidiary), which amount to about 14,5 billion euros. According to Kering’s announcement, issued yesterday, “Italy’s tax agency department is going to assess the audit report: they will examine statements and results, emphasized in the report, and will subsequently make their final decision. Kering firmly contest the results of the audit report, both for its reasons and the amount. Kering are confident about the outcome of the proceedings, currently underway, and will fully cooperate, with full transparency, with Italy’s tax authorities, to safeguard all the group’s rights”. The multinational corporation emphasized that “they have implemented a strict monitoring of their fiscal risks”; moreover, “they have opted for a cautious attitude while evaluating their own fiscal liabilities, especially the ones related to a transfer pricing policy”.
Kering have not paid 1,4 billion taxes, claims Italy’s inland revenue. The French group reply: “We liaise with full transparency”
