Milan prosecutors wrap up Gucci tax probe ahead of likely trial: Source

The prosecutors suspect Gucci, which is part of French luxury group Kering, may have paid taxes on profits generated by sales in Italy in another country with a more favourable tax regime.
The prosecutors suspect Gucci, which is part of French luxury group Kering, may have paid taxes on profits generated by sales in Italy in another country with a more favourable tax regime.PHOTO: REUTERS

MILAN (REUTERS) - Milan prosecutors have wrapped up their probe into alleged tax evasion of around 1 billion euros (S$1.56 billion) by fashion group Gucci, paving the way for a formal request for a trial, a judicial source said on Tuesday (Nov 27).

The prosecutors suspect Gucci, which is part of French luxury group Kering, may have paid taxes on profits generated by sales in Italy in another country with a more favourable tax regime.

Gucci Chief Executive Marco Bizzarri and former CEO Patrizio Di Barco are under investigation in the case, the source added.

The lawyers for the two executives could not immediately be reached for comment.

Gucci's parent Kering said it was "confident about the correctness and transparency of its operating mode, and is cooperating actively with the competent authorities".