Gucci has confirmed that it is undergoing investigation over suspected tax evasion in Italy.
Following a report by Italian newspaper La Stampa, Gucci confirmed that last week the police raided the company’s offices in Milan and Florence for evidence of income under-reporting. The Milan public prosecutors suspected the fashion house of declaring several years’ worth of Italian sales in Switzerland, thereby saving about €1.3 billion in domestic tax.
“Gucci confirms that it is providing its full cooperation to the respective authorities and is confident about the correctness and transparency of its operations,” the company said in a statement.
Gucci is currently experiencing a revival with 49.4 per cent sales growth in the third quarter this year following the appointment of Alessandro Michele as the brand’s creative director in 2015. It is one of the latest businesses to receive increased scrutiny from Italian authorities. In 2014, Prada was forced to pay €470 million for its tax avoidance, while Giorgio Armani had to churn €270 million following a tax dispute.