The price of Kering’s tax dispute settlement has finally been revealed: €1.25 billion ($1.4 billion). This is in line with what the company was previously expected to settle for. The Business of Fashion reports Kering will pay “an additional €897 million in taxes this year and another roughly €350 million in penalties and interest.”
Kering found itself in trouble with Italian authorities last year over alleged tax fraud. Gucci alone was said to owe around €1 billion in taxes for revenue earned between 2010 and 2016. According to WWD the tax authorities accused the company of intentionally avoiding tax payments in Italy by distributing Gucci products within the country through it’s Switzerland-based subsidiary, Luxury Goods International.