The Luxury Tax Evasion Of Luxury Goods Is Realized With The Aid Of A Shell Company

"A major trend after the global financial crisis is that governments are facing an important problem of tax base erosion, raising the focus on tax sovereignty and paying more attention to their own economic interests."

Wang Ying, a tax partner of PWC retail and consumer goods industry in Central China, said, "therefore, more stringent tax policies or more stringent enforcement measures will be adopted for multinational corporations."

Luigi Macioce, a partner in business and taxation at Milan law firm, said that the reason why the tax bureau first started with the fashion group was that it was easy for the luxury group to be identified as a multinational company.

Recently, Bvlgari (Bulgari) has evaded taxes on the alleged loss of 3 billion euros. The 3 billion euro income is exported to 2006-2011 of the company executives in the 2006-2011 countries with lower corporate tax rates - Luxemburg, Holland and Ireland.

It is reported that an Irish company called Bulgari Ireland Ltd. has annual revenue of 693 million 700 thousand euros, which is actually the income of Bulgari in Italy and other local stores.

Bvlgari will face tax evasion this fall.

Prada group (Prada) has pferred its assets to Holland and Luxemburg, a well-known tax haven.

The move caused Italy tax authorities to suspect and launched an investigation into Prada.

But Prada executives say pferring assets is purely a desire for more tax concessions and no tax evasion motives.

Prada issued a statement that it had reached an agreement with the Italy tax authorities that it would return the taxable assets back to Italy, thereby investing in Italy and helping the local economy recover, and would also pursue relevant taxes.

In the low tax countries, the registration of shell companies as the main trading companies, and 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 difference between the tax rates and tax exemption conditions of different enterprises in different regions, and pfer profits to the taxable companies with low tax rates or tax exemption so as to minimize the tax revenue of the whole group.

Matteo Marzotto, former chairman of Valentino (Valentino), was also accused of tax evasion.

71 million euros, because the family sold 782 million stake in Valentino fashion group at 29.9% euros in 2007, and operated by Luxemburg, a company called International Capital Growth, which allowed the Marzotto family to evade Italy's high tax policy.

Italy

The survey is related to the three wholly owned subsidiary of Giorgio Armani.

Although the three companies have moved the tax registration place back to Italy in 2009, Italy's Inland Revenue Department believes that the income of the companies from 2002 to 2009 must also be taxed in Italy.

Armani group has paid 270 million euros to Italy tax bureau to settle tax investigation.

In addition to the rejection of the Dolce & Gabbana tax evasion lawsuit, most luxury groups and people involved have accepted sanctions and penalties, and have paid tens of millions of euros to hundreds of millions of euros in settlement funds.

The group does not recognize tax evasion charges, saying that reconciliation fund is only a long-term investigation to avoid focusing on innovative activities.

Luxury brands often focus on their image, especially the listed companies. The continuous tax investigation will 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."