Kering is said to have confirmed that it is currently in negotiations with the Italian tax authorities to resolve a tax investigation relating to Alexander McQueen.
The company responded to a report by Reuters, which cited informed sources. Accordingly, prosecutors in Florence have opened an investigation into unreported tax returns for the years 2016 to 2022. Local authorities accuse the Alexander McQueen brand of failing to pay taxes on income amounting to 60 to 70 million euros during this period.
Parent company Kering told the media platform that “discussions are ongoing with the Italian tax authorities.” The French luxury group also emphasized that it was “convinced of the correctness of its own business practices” and was continuing the discussions “in the spirit of a constructive dialogue”.
This case has parallels to Kering’s previous tax disputes with the Italian tax authorities, including Gucci, which paid €1.25 billion in 2019, and Bottega Veneta, which paid €187 million in 2022.
Similar to these cases, Alexander McQueen’s sales were reported through Kering’s Swiss subsidiary Luxury Goods International. However, authorities said the tax should have been paid in Italy and not Switzerland, Reuters’ sources said.
The investigation could be resolved either through a dismissal or a settlement, provided an appropriate agreement is reached and signed between Kering and the tax authorities.
This article previously appeared on Fashionunited.uk and was created using digital tools translated.
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