Big Names Evade Taxes And Provoke Storm And Tax Evasion.
< p > a tax evasion case that has been entangled for several years has continued to involve Italy's luxury brand Dolce&Gabbana (Dujia Bana).
Recently, the Italy court of appeal upheld the conviction of the Milan court against its two founders, reducing its imprisonment for 20 months to 18 months, while Dolce &Gabbana said in court that it would continue appealing to the Italy Supreme Court.
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The tax evasion case began in 2004 when the two founders sold the brand logo and sub line brand to a holding company in Luxemburg.
In 2008, Italy financial police began investigating and accusing two people of double taxation evasion, amounting to 416 million euros (about 4 billion yuan).
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P & Dolce, a luxury brand accused of selling shares to foreign companies or setting up companies abroad to avoid tax purposes, Gabbana & amp; t is not alone.
Valentino (Valentino) former chairman Matteo Marzotto has also been accused of tax evasion 71 million euros, because the family sold 782 million of Valentino fashion group's 29.9% stake in 2007, and operated by Luxemburg, a company called International Capital Growth, which allowed the Marzotto family to evade Italy's high tax policy.
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< p > in addition to the above two luxury brands, the past two years related to tax investigation also include luxury glasses manufacturing group Luxottica (Lu Xun ladder card) and Safilo (Xia Feinuo), LVMH group's Bulgari (Bvlgari), Giorgio Armani (Giorgio Armani) and so on.
Why are these luxury companies falling into the abyss of tax investigation? < /p >
< p > < strong > tax base erosion hidden trouble < /strong > /p >
"P >" global a href= "http://www.91se91.com/news/index_c.asp" > financial crisis < /a > a major trend is: governments are facing an important problem of tax base erosion, raising the degree of concern about tax sovereignty, paying more attention to their own economic interests.
Wang Ying, a tax partner of PWC retail and consumer goods industry in China, said to the first Financial Daily reporter, "therefore, more stringent tax policies or more stringent enforcement measures will be adopted for multinational corporations."
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< p > generally speaking, "the layout of multinational corporations in different countries on the global scale, through the comparative advantage of all countries, determines which country should be placed in the functional departments of a company, and is a normal business arrangement and decision."
Wang Ying thinks.
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< p > some European companies will consider holding holding companies in countries such as Luxemburg, but these holding companies may not all have real business.
LVMH group's Bulgari has been accused of illegally pferring its income to Luxemburg and Irish holding company to achieve tax evasion purposes. It allegedly concealed 3 billion euros ($4 billion) earnings and evaded taxes.
According to Bloomberg reports, the 3 billion euro income was exported to senior companies outside Italy in 2006, 5 years in ~2011.
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< p > registration of shell companies in low tax countries as the main trading companies, and at the same time, the specific operation of the high tax countries is the main mode of tax avoidance. An insider familiar with the tax operation told reporters that this could make use of the differences in tax rates and tax exemption conditions of different enterprises in different regions, and pfer profits to low tax rates or tax-free branches, so as to minimize the tax revenue of the whole group.
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< p >, however, "whether tax avoidance or < a href=" http://www.91se91.com/news/index_c.asp "> tax evasion > /a > affirms that each country has different tax laws and is also related to international tax treaties."
Liu Xiaobing, a professor at the school of public economics and management of Shanghai University of Finance and Economics, told reporters. "Therefore, when the relevant brands are developing their business and conducting pactions, they need to know about the relevant matters beforehand."
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< p > < strong > balance is strategic thinking < /strong > < /p >.
In addition to Dolce & Gabbana, most luxury groups and persons involved in the case are reconciled and pay a settlement of tens of millions of euros to hundreds of millions of euros, in addition to the P & Gabbana.
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< p > Italy luxury goods group Armani recently paid 270 million euros to Italy tax bureau to settle tax investigation.
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In February this year, Safilo, a high-end eyeglasses manufacturer, also issued a statement announcing that it would be reconciled with the Italy tax bureau at the cost of 21 million euros. The sum will begin in February 2014 and will be handed in quarterly basis in 12 quarters or 3 years.
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< p > < < a href= > http://www.91se91.com/news/index_c.asp > > luxury brand < /a > tend to pay attention to their image, especially listed companies, tax investigation continues to bring uncertainty to investors.
A luxury industry analyst told reporters, "therefore, some worried that the endless investigation will bring more spending and damage the image of the brand has to pay taxes in succession, but some companies continue to appeal that they have made a reasonable tax arrangement."
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< p > "luxury companies have more intangible value in terms of brand connotation, classic design, quality control, brand authorization and supply chain management compared with labor-intensive companies," Wang Ying said. The development of technology and commerce is always faster than the formulation of laws and regulations, and the law on intangible value is gradually evolving.
Therefore, "multinational companies will make their own reasonable judgments in the framework design and business arrangement, but the rationality is different for governments."
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< p > even under the same legal conditions, Liu Xiaobing indicated that different enterprises may have different tax feelings.
Under the new business and tax situation, most of the luxury goods groups have been evade tax through Off Shore Company. Most of them have been identified as tax evasion by the Italy authorities.
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< p > Wang Ying suggested that in the new business environment where more countries pay more attention to tax sovereignty, pnational corporations such as luxury goods should further consider the balance in various countries' commercial layout.
"This balance is not only a matter of operation and operation, but TNCs should consider the above balance as an important strategic aspect."
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< p > on the other hand, multinational corporations should adopt a more rigorous arrangement at the technical level in the pfer pricing (sales pfer price of the Group subsidiaries which do not involve the state), so as to help the company prove the rationality of these arrangements in various countries.
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< p > these problems need to be considered from the angle of enterprise tax administration. In Wang Ying's view, it also has reference significance for China's going out private enterprises under the new situation.
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