// Kering has agreed to pay £1.07bn to Italian tax authorities
// Tax authorities claimed Kering’s Swiss-based subsidiary, Luxury Goods International (LGI) failed to pay taxes from 2011 to 2017
// The amount is the largest settlement ever agreed by a company with the Italian tax authorities
Kering has agreed to paying a total of €1.25 billion (£1.07 billion) to Italian tax authorities to settle a dispute.
The tax authorities claimed that the Swiss-based subsidiary of the luxury retail company, Luxury Goods International (LGI), failed to pay taxes that were due in Italy from 2011 to 2017.
”The group has concluded today a settlement with the Italian Revenue Agency relating to claims vis-a-vis its Swiss subsidiary,” Kering said in a statement.
“The settlement will involve the payment of €897 million (£774 million) in additional taxes, along with further payment for penalties and interest.”
The parent company of luxury retailers like Gucci also said it would consequently record a tax charge of around €600 million (£5.2 billion) in its 2019 accounts.
Meanwhile, Kering recorded €13.7 billion (£11.8 billion) in sales last year, of which Gucci – its fast-growing brand – accounted for 60 per cent.
The total required payment €1.25 billion (£1.07 billion), is the largest settlement ever agreed by a company with the Italian tax authorities.