Kering SA, the French owner of the Gucci luxury brand, owes about 1.4 billion euros (US$1.6 billion) to Italy in back taxes, according to the conclusions of a government audit.
The probe scrutinized business activities by Kering’s Swiss subsidiary, Luxury Goods International, from 2011 through 2017, according to a company statement. Kering said it contests the findings of the Italian audit.
Italian authorities opened a probe into the Gucci owner’s taxes in 2017, focusing on a Swiss subsidiary of the Paris-based company. Citi analysts had estimated that Kering could face a settlement of 1.3 billion to 2 billion euros from the probe.