Gucci owner Kering faces tax investigations

Swiss prosecutors have opened an investigation into luxury fashion giant Kerring over alleged tax evasion after a request for assistance from Italian authorities.

According to reports, an Italian inquiry which began in November 2017 looked into whether profits Kerring made on Gucci sales in Italy had actually been declared in Switzerland, where tax laws are more favourable.

In a statement to Reuters on16 March 2018 Kering said it had complied with Swiss tax laws and that its distribution center in Switzerland exercised “tangible business activities”.

An article by the The New York Times said the investigation comes less than a week after Kering had been forced to deny new accusations that it had failed to comply with tax laws.

Kering is the latest luxury group to find itself under being investigated Italian tax authorities, following a crackdown on tax evasion.