Kering Agrees Record Italian Tax Settlement

13 May 2019

The settlement, which was first reported last month, is the highest ever agreed by a company with the Italian tax authorities. Kering, which has denied avoiding tax, has a cash pile estimated by analysts at more than £8.5 billion, meaning it was equipped to absorb the cost.

However, the case carries with it a reputational impact for a group that has long highlighted its social responsibility credentials and its environmentally friendly initiatives. Kering’s billionaire boss, Francois-Henri Pinault, pledged £86 million for the rebuilding of the Notre-Cathedral in Paris after it was devastated by fire last month.

“In terms of reputation, this is a slightly more important concern as Kering has stood up as a champion of ESG (environmental, social and governance),” Bernstein analyst Luca Solca said, adding that it might have a ripple effect on ESG-minded investors, though probably less so with consumers.

Privacy Policy
We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.