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Kering subject to Swiss tax probe

By Don-Alvin Adegeest

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Business

Luxury group Kering is the subject of a tax probe concerning 2.5 billion euros that company is alleged to have channeled in Switzerland between 2002 and 2017 via its logistics platform LGI.

France’s Médiapart reported on Friday that Kering had saved about 2.0 billion euros in taxes since 2009 including 1.4 billion for Gucci and 180 million for Saint Laurent.

French Minister of economics Bruno Le Maire said Sunday that an investigation was under way in Italy concerning Kering’s Swiss tax operations, however the ministery stated no such investigation was opened in France.

"There is an investigation in progress and the investigation will go to the end. (...) The principle of fiscal justice will be defended in this case as in all other cases," said Sunday Bruno Le Maire on France Inter.

Going back to 2002, the figure would have reached 2.5 billion, "essentially to the detriment of Italy, but also of France and the United Kingdom", according to the site of investigation which reports a survey conducted with the European Network of Investigative Media (ECI).

Kering responded via email to Reuters on Friday, stating: "The group pays taxes in Switzerland, in accordance with the law and the tax status of the company".

"This operating model is known to the French tax authorities and other relevant tax authorities," the email stated.

In January, Kering denied news of Médiapart reporting a tax evasion scheme to pay Gucci boss, Marco Bizzarri.

Gucci remains the star brand in the Kering portfolio and its main source of profits. The company has been under investigation by the Milan prosecutor's office since November 2017 on suspicion of tax evasion.

Photo credit: Gucci via Kering website

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