Gucci. Picture: BLOOMBERG/VALENTIN FLAURAUD
Gucci. Picture: BLOOMBERG/VALENTIN FLAURAUD

Rome — Italian fashion giant Gucci on Monday said police raided its offices over suspected tax evasion, confirming a report in the Italian press.

The Milan public prosecutor suspected the fashion house of declaring several years worth of Italian sales in Switzerland, thereby saving about €1.3bn in domestic tax, La Stampa daily said.

The investigation is reportedly based on information from a former senior Gucci employee who has since left the company, which is part of French luxury group Kering. La Stampa said financial police had spent at least three days searching Gucci’s new, ultra-modern Milan headquarters and also other offices.

"With respect to an article concerning an audit by the local tax police conducted at Gucci’s offices in Florence and Milan published in an Italian newspaper today, Gucci confirms that it is providing its full co-operation to the respective authorities and is confident about the correctness and transparency of its operations," Gucci said in a statement.

Four years ago, fellow Italian fashion behemoth Prada had to pay €470m to the Italian taxman after it declared a decade’s worth of home revenue abroad. The Italian tax dragnet has since extended to tech giants — €318m of Italian revenue for Apple and €306m for Google, while investigations are also under way regarding Amazon and Facebook.

Gucci has turned in a strong recent performance with third-quarter organic growth of 49.4% on €1.5bn of sales.

AFP

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