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    Allegations Of Tax Arrears, The Company'S Tax Payment In Switzerland Is Undenying.

    2019/1/29 15:42:00 44

    Kai Yun GroupTax Accusation

    In January 25th, the Italy Tax Bureau filed a charge against Kering, a French luxury giant, claiming that its Swiss subsidiary Luxury Goods International (hereinafter referred to as LGI) should pay up to 1 billion 400 million euros of tax to Italy.

    Since 2017, the Inland Revenue Department of Italy has begun to verify the audit report of Kai Yun group from 2011 to 2017.

    Among them, Kai Yun group's flagship brand, Italy luxury brand Gucci is their main object of investigation.

    Tax officials believe that although LGI is headquartered in Switzerland, it mainly conducts business activities in Italy, so it should pay taxes to Italy tax bureau.

    The Italy tax bureau will examine the audit results and make a final conclusion.

    But Kai Yun group was dissent.

    They said that all the subsidiaries in Switzerland were doing frequent business activities, so they should comply with the law and pay taxes to Switzerland according to the company's financial condition.

    The tax authorities in France and other countries understand and allow such a business model.

    Kai Yun group said in a statement that the group is confident of the ongoing review.

    In order to safeguard their legitimate rights and interests, they will cooperate with the Italy Taxation Bureau to conduct a thorough and pparent examination.

    The group has always maintained a very strict attitude towards tax issues, and is cautious about dealing with tax issues related to group pfer and pricing terms.

    At present, the group does not need to mention this huge tax.

    In March 2018, the French news website "Mediapart" reported that Kai Yun group had submitted false information, and tax evasion of 2 billion 500 million euros was made through the Swiss logistics center LGI.

    They also pointed out that the 20 Italy employees dispatched to Switzerland by the Kai Yun group were still working in Italy.

    Kai Yun group refute the report.

    Analysts at Citi Group say that if all is true, Kai Yun group may have to pay 1 billion 300 million to 2 billion euros in taxes and fees to the Italy government.

    John Guy, an analyst at Mainfirst Bank, a European private equity fund, said that the group may face a fine outside taxes and fees, but there is still room for leeway, and the final payment may be reduced.

    Gucci, the flagship brand of Kai Yun group, has been in a lot of trouble because of tax problems.

    In December 2017, Gucci's headquarters in Florence and Italy office were raided by Italy's tax authorities for suspected tax evasion of 1 billion 300 million euros.

    In January 2018, Gucci was passed through Off Shore Company to avoid tax for CEO Marco Bizzarri and employees.

    In November 2018, Gucci was suspected of evasion of 1 billion euros and was about to be prosecuted by prosecutors in Milan, Italy.

    (1 euros is currently about 7.7 yuan).

    About Luxury Goods International

    Founded in 90s of last century, Kai Yun group is headquartered in Switzerland.

    LGI is the strategic center of Kai Yun group, which is mainly responsible for the distribution and logistics business of the group's brand, and now has more than 600 employees.

     

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