The investigation into Kering’s alleged tax evasion by Italian fiscal authorities is gaining traction and could potentially have far-reaching implications beyond just Italy. Members of the Swiss Ticino canton parliament are now pushing for a formal complaint regarding the “fictitious domicile” of former Gucci CEO Patrizio di Marco, as reported by Swiss news agency ATS.
Kering revealed in a statement on January 25 that the Italian authorities estimated the amount of tax evasion to be approximately €1.4 billion. Francois-Henri Pinault, during a presentation of the group’s annual results in mid-February, announced that the investigation phase had concluded, and they are now preparing to present their own arguments. They plan to rely on the operational structure of Gucci, which has been in place since the late 1990s.
The investigation was initially sparked by a 2017 probe from French media outlet Mediapart, which uncovered a tax avoidance scheme involving Gucci, with connections to a Luxembourg-based company and a Swiss tax domicile. Matteo Pronzini, a member of the Ticino canton parliament, has officially filed an inquiry with the Swiss government, specifically questioning the fiscal practices of global businessmen and managers in relation to the Gucci case.
According to Mediapart’s report, Pronzini has lodged a criminal complaint against Marco Bizzari and Patrizio Di Marco, alleging that they obtained a fiscal domicile in Ticino with the help of Kering. The MPS party is urging the upcoming cantonal parliament to delve into Kering’s fiscal situation in Ticino, especially through its LGI subsidiary.
The left-wing party has also called for the public prosecutor to investigate the suspected fraudulent domiciles of Di Marco and Bizzarri, with potential criminal implications if the allegations are proven true. The Swiss Confederation’s Public Prosecutor’s office has already initiated criminal proceedings at the federal level.
Fashion Network approached Kering for a comment on the ongoing fiscal investigations in Switzerland, but the group declined to provide a statement. As the investigation unfolds, the repercussions for Kering and its top executives could be momentous.
For more information about the ongoing tax investigation involving Kering, you can visit the following links:
1. Reuters
2. Bloomberg
