French luxury goods group Kering will pay almost €187 million ($207 million) to settle a dispute with Italian tax authorities centered on its fashion brand Bottega Veneta.
As per a Fashion Network report, revenue at the Italian leather goods house were booked through Kering's Swiss-based subsidiary Luxury Goods International and Italian prosecutors and the tax should therefore have been paid in Italy, not Switzerland., argue tax authorities.
Luxury Goods International paid €186.8 million to settle the tax case, covering the fiscal years 2012 to 2019.
Separately, Milan prosecutors' are still investigation the company for tax evasion. These prosecutors have in the past probed US tech gaints such as Apple, Amazon and Facebook over taxes allowing Italy to net several billion euros in fines and tax payments.
In previous cases, once the agreement between the companies and the Italian tax agency was signed, prosecutors closed the criminal investigation with either a dismissal or a settlement.
