January 25, 2019 / 5:28 PM / 22 days ago

Kering faces potential 1.4 bln euro Italian tax claim

PARIS, Jan 25 (Reuters) - Kering is facing an Italian claim for 1.4 billion euros in unpaid taxes, the French luxury goods group disclosed on Friday, adding that it contested the preliminary findings.

The Gucci owner’s Swiss-based Luxury Goods International (LGI) subsidiary has been under investigation for allegedly avoiding tax on earnings generated elsewhere.

Kering has consistently denied the allegations, saying its activities were all tax compliant.

In its statement on Friday, the group said the Italian tax authorities’ findings for the years 2011-2017 had yet to be finalised by their own enforcement team.

“Kering challenges the outcome of the audit report both on the grounds and the amount,” the company said, adding that it “does not have the necessary information” to record a provision against any potential bill for back taxes or penalties. ($1 = 0.8766 euros) (Reporting by Sarah White; Editing by Laurence Frost)

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