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Gucci to Face €1 Billion EUR Tax Evasion Trial

Gucci to Face €1 Billion EUR Tax Evasion Trial

After Gucci‘s head offices were raided last year, the label is reportedly due to face trial for tax evasion believed to total around €1 billion EUR (around $1.13 billion USD). This news comes after Milan-based prosecutors finished their probe into the Kering-owned label.

According to Business of Fashion, prosecutors suspect that Gucci paid taxes on profits generated from sales in Italy in a different country with a preferable tax regime, with incidents between 2010 and 2016. The prosecutors claim Gucci’s revenues involved dealings through Switzerland rather than Italy.

Gucci’s chief executive Marco Bizzarri and former chief executive Patrizio Di Marco are both believed to be under investigation in the case. Kering released a statement about the news, adding that it was “confident about the correctness and transparency of its operating mode, and is operating actively with the competent authorities.”

In other fashion news, watch Hedi Slimane’s first campaign video for CELINE.