Kering confirms tax authorities talks regarding Alexander McQueen probe

Kering is believed to have confirmed that it is currently negotiating with Italian tax authorities to settle a tax probe on Alexander McQueen.

The company responded to a report by Reuters–which cited sources with knowledge on the matter–that stated Florence-based prosecutors had opened up an inquiry for omitted tax declarations for the years 2016 to 2022 after local police alleged the Alexander McQueen brand failed to declare around 60 to 70 million euros in taxable income.

Now, the brand’s parent company, Kering, has confirmed in a statement to the media outlet that “discussions are underway with Italian tax authorities”, with the French luxury giant adding that it was “confident of the correctness of their operations”. It was thus “pursuing these discussions in a spirit of constructive dialogue”.

This case mirrors similar fiscal litigation disputes with Italian tax authorities faced by Kering in recent years, including with Gucci, for which it paid 1.25 billion euros in 2019, and Bottega Veneta, for which it paid 187 million euros in 2022.

Akin to these cases, revenue for Alexander McQueen was reported through Kering’s Swiss subsidiary, Luxury Goods International. Authorities state that tax should have been paid in Italy, not Switzerland, sources for Reuters claimed.

The investigation can be closed with either a dismissal or settlement upon the establishment and signing of an agreement between Kering and the tax authorities.