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270 million euros fine for Giorgio Armani

July 24, 2014 • Business

The Armani group paid the Italian tax authorities a hansome sum of 270 million euros to put an end to the Italian government’s investigation. The fashion brand is accused of having created a number of subsidiaries in foreign countries to reduce its taxes.

 

Armani accused of tax evasion

For a few years now, the Italian government has been reinforcing its controls to prevent tax evasion by being uncomprising with its large Italian companies. As was the case with Dolce & Gabbana, and more recently Prada, the influential names of the luxury sector have not been forgotten.

Giorgio Armani is accused of having developed a series of companies outside of Italy between 200 and 2009, in order to pay fewer taxes. The tax authorities focused their attention on one subsidiary located in Switzerland GA Modefine, to verify its tax jurisdiction.

To put an end to the investigation, Armani preferred to settle.

 

giorgio armani

 

Settlement with the Italian tax authorities

The fashion brand Giorgio Armani paid 270 million euros to the Italian tax authorities. In exchange, all the charges against the luxury group were abandoned.

The settlement signed by both parties, nonetheless concedes that Armani paid taxes in other countries which reduced its fine. In addition to the fine paid, Armani is also required to pay the backdated taxes from 2002 to 2009.

 

Thanks to this arrangement the Armani group managed to stop any challenges by the tax authorities concerning its activities during this precise period.

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