Gucci is involved in tax investigation

According to a report from the Reuters published on Saturday shows that the Italy tax police (specialized in financial crime case of national police force) in a week of Italy luxury brand Gucci is located in Milan and Florence Office of financial research, sources pointed out that the investigation from Milan prosecutors suspect Gucci suspected of tax evasion, the profit transfer to lower tax countries approach.

Gucci confirmed that there was indeed an investigation and issued a statement that “the company is actively cooperating with the relevant departments, and is confident of its business correctness and transparency.” Italy luxury brand tax evasion is a long-standing problem, the Italy tax authorities have been taking action, had suffered the investigation of Italy luxury giant Bulgari, including Valentino, Prada, Dolce & Gabbana and Luxottica group, but in terms of the previous case, the final results of the survey are the huge fines and taxes, reconciliation with the authorities in Italy.

As of the three quarter at the end of September, Gucci recorded a 49.4% organic sales growth than in the two quarter of 39.4% to further speed, far higher than the market forecast of 30% and 17% over the same period last year; revenue reached 1 billion 553 million 800 thousand euros, accounting for 40% of the group’s overall revenue. The strong growth trend of Gucci in the past two years, no signs of cooling, open cloud group fully deserve a cash cow, at the same time, Gucci’s profitability is rising at the end of June, the first half of the fiscal year ended, the company continued business operating profit rose 69% to 907 million 300 thousand euros, 536 million 900 thousand euros for the same period in 2016.

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