Kering to pay €186.7m over Bottega Veneta tax dispute

Kering has reportedly agreed to pay £157 million (€186.7 million) to settle a tax dispute with the Italian Revenue Agency for its Bottega Veneta brand, according to Reuters.

Revenue at the Italian fashion house was booked through Kering's Swiss-based subsidiary Luxury Goods International. Italian prosecutors and tax authorities have argued that the tax should have been paid in Italy, not Switzerland.

Reuters said that Kering has confirmed the details of the settlement but did not confirm the cost, saying it would have no impact on the group's results in 2022.

In a statement, Kering said: "In the spring of 2019, given the rapid changes in its business environment, its strong international growth and some uncertainties of Italian legislation, Bottega Veneta proactively made contact with the Italian Revenue Agency to discuss its tax position. This agreement is the result of those discussions.

"Given the prudent assessment of tax liabilities in Kering’s accounts in recent years, this will have no impact on the group’s results in 2022 or on the normative recurring tax rate in future years. Kering will continue to base its relationship with tax authorities on trust and transparency over the long term."