Gucci is under fire for tax evasion. Last year, prosecutors in Milan claimed that Gucci owed Italy close to 1 billion euros, the equivalent of 1.13 billion USD, in taxes on profits made between 2010 and 2016. The luxury brand’s chief executive officer Marco Bizzarri and his predecessor Patrizio Di Marco have been under investigation.
It is suspected that Gucci paid taxes on its profits earned through sales in Italy during the six year span in question in Switzerland as a means to pay lower tax rates. The prosecutors have claimed that even though Gucci’s sales have been made through Swiss company Luxury Goods International, the profits should be taxed in Italy.
The Milan prosecutors have now made a formal request for a trial. Gucci’s tax evasion case will go to court within the next 20 days, unless both parties can agree on a settlement.
Gucci’s parent group, Kering has said in a statement that it is “confident about the correctness and transparency of its operating mode, and is cooperating actively with the competent authorities.”