French luxury group Kering is close to settling a dispute with Italian authorities over unpaid taxes by its fashion brand Gucci. The group is set to pay somewhere between £1.1 billion and £1.2 billion according to sources.
The agreement, between the group and the Italian tax authority, is expected to be signed in the first few days of May. It would be the biggest tax settlement ever agreed by a company with the Italian tax authorities.
In an emailed statement Kering said it had held regular discussions with the Italian tax service, adding the meetings took place in “an open and collaborative climate”.
“At this stage, no agreement has been reached yet on any specific figure,” it added.
By agreeing to a settlement, Kering would be spared having to pay interest and sanctions for late tax payments, which one source said would have added around €500 million to the final bill.
Gucci’s Chief Executive Marco Bizzarri and former CEO Patrizio Di Marco are under investigation in the case.
That investigation is expected to conclude with a separate settlement once the agreement on the tax dispute has been signed, one of the sources added.