Gucci Confirms Offices Were Raided in Tax Evasion Probe

Gucci has confirmed that it is at the center of an investigation regarding tax evasion.

In a statement over the weekend, the Italian luxury fashion house verified reports that its headquarters in Florence and Milan were audited last week by local tax police.

“Gucci confirms that it is providing its full cooperation to the respective authorities and is confident about the correctness and transparency of its operation,” the Kering-owned brand further noted.

Gucci’s statement came in response to a Saturday report by Italian daily La Stampa, which detailed the audit.

According to Reuters, a source with direct knowledge of the matter said Milan prosecutors suspected Gucci may have paid taxes on profits generated by sales in Italy in another country with a more favorable tax policy.

After a period of sluggishness, under the leadership of president and CEO Marco Bizzarri and creative director Alessandro Michele, Gucci — which brings in the lion’s share of revenues of Kering — has made a marked transformation.

The rebound has been apparent in the brand’s earnings: In the most recent quarter, the label’s revenues gained 49.4 percent, 1.6 million euros, or $1.8 billion.

Tax issues are seemingly becoming more prevalent in the luxury fashion space. Gucci joins a growing list of upscale fashion houses — including Prada, Bulgari and Georgio Armani — that have had brushes with the Italian tax authorities.

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