Kering under French investigation for 2,5 billion euros tax evasion. The group replies: “Everything is in order”

At first, it was Gucci, under accusation, last November, for tax evasion in Italy, since they were allegedly recording in Switzerland their accounts coming from Italian business. Total amount: 1,3 billion euros. The inquiry is getting broader now, as Kering, the French group in control over the double G. fashion brand, are involved as well. As reported by some press sources, quoting Mediapart news website and European Investigative Collaborations (EIC), a newspaper network, Bruno Le Maire, the French Minister of Economic Affairs, did not deny that Kering is under investigation, as the inquiry is underway. The group is charged with tax evasion, 2,5 billion euros, from 2002 till 2017, which they drove forward by using “improperly” (as Gucci did) their logistics platform, Luxury Goods International, headquartered in Switzerland, in Cadempino (Canton Ticino). The total amount, 2,5 billion euros, apparently includes both taxes evaded by Gucci in Italy, and a number of activities the group has been carrying out in France and Great Britain. Mediapart stated that some documents, in their possession, prove that “Kering built up a hidden system to dodge taxes, in which all their fashion brands are involved”. While talking to press agency France Presse, Kering have not commented Mediapart allegations, yet they firmly pointed out that “the group has implemented a corporate governance that aims to ensure thorough compliance with the tax regulations in the countries where the group works”. Kering cleared up that their Swiss company “is a strategic hub with regard to supply and centralized logistics as to their own brands: we founded it in the nineties, and it currently employs over 600 working units. Every operating company in Switzerland actually runs a real business; therefore, Kering group attends to pay taxes in Switzerland in compliance with local regulations and corporate bylaw. Both French finance authorities and all the others in charge are fully aware of such modus operandi”.


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