Gucci The Tax Problem Has Not Yet Been Solved, And Opening Up The Cloud Has Fallen Into A New Tax Wave.

The tax crisis is not over yet.

Italy tax department recently claimed that Kering, a French luxury group, owed a total of about 1 billion 400 million euros in taxes between 2011 and 2017.

The Department pointed out that Kai Yun group's headquarters of its subsidiary Luxury Goods International in Switzerland, through the company's business activities in Italy, should have paid business taxes to Italy, but the Department's survey since 2017 shows that Kai Yun group has been paying taxes to the Swiss tax department at a lower tax rate.

Luxury Goods International was founded in Switzerland in 1990s by Kai Yun group. It is the strategic center of Kai Yun group. It is mainly responsible for the distribution and logistics business of the group's brand, and now has more than 600 employees.

However, shortly after the allegation was issued, Kai Yun group objection to the tax avoidance behavior, reasons and amount involved in the allegation.

In a statement released recently, the group said that Kai Yun group has been monitoring its tax risk strictly and has always taken a cautious approach to deal with the issue of tax risk appreciation, especially when it comes to tax issues such as group pfer and pricing terms. It is even more cautious about ten points.

"Kai Yun's subsidiary in Switzerland has carried out practical business activities all over the world.

Therefore, according to the law and the financial position of the company, the group should pay the tax payable in Switzerland.

The competent tax authorities in France and other countries understand this kind of business operation mode.

Kai Yun group added.

It has full confidence in the ongoing litigation and says it will continue to cooperate fully with the Italy tax authorities in a completely pparent manner to safeguard its due rights.

But in fact, over the past year or so, Kai Yun has not been able to get rid of the turmoil of tax disputes.

As early as November 2018, Kai Yun had said it was working with the Italy authorities to solve the case of its luxury brand Gucci, which was suspected to have evade taxes of 1 billion euros.

In a similar case, at that time, the Italy police were registered in Switzerland with Luxury Goods International, a subsidiary of Kai Yun company, in order to reduce the tax payment by registering Gucci's actual business activities in Italy.

Although there were reports that the Milan prosecutor ended the investigation on suspicion of tax evasion by the end of the year, the trial result may be carried out on Gucci, but no penalty message has been published so far.

According to the women's wear daily, Gucci is still the core of the tax investigation. However, no matter whether it is in the official statements of Kai Yun group or Italy tax department, the brand is not mentioned alone. It can be seen that the brand of the company's tax payment through the subsidiary may be more than Gucci.

However, in view of the objection of Kai Yun group to the accusation, the tax department of Italy will make a decision after reviewing the latest audit report submitted by the group in January 25th.

John Guy, an analyst at Mainfirst Bank, a European private equity fund, says there is still room for the event, and although open cloud group may still face fines other than tax, the final payment may be reduced.