Kering's Billions: Italian Tax Evasion Scandal Rocks Luxury Fashion

Kering's 1.5 Billion Euro Tax Evasion Scandal: Report Rai3 Exposes Luxury Brands' Practices Italy is investigating a massive tax evasion case involving Kering, the luxury conglomerate that owns Gucci and Bottega Veneta. Report Rai3's "Fuori Moda" segment uncovered evidence suggesting Kering artificially shifted its production to Switzerland to avoid taxes, resulting in a settlement of 1.5 billion euros with the Italian tax authorities. The investigation also revealed troubling labor practices in Chinese factories supplying brands like Armani and Dior. Former Kering tax executive, Carmine Rotondaro, provided key insights into the tax evasion scheme. "Dalle mie rivelazioni è nata un'inchiesta a carico di Kering," Rotondaro stated, highlighting the impact of his revelations on the investigation. The case also involves the controversial gifting of Hermès bags by Italian Minister Daniela Santanchè, raising further ethical concerns. The investigation underscores the need for greater transparency and accountability within the luxury fashion industry. This case has the potential to impact future regulations and practices within the industry and shows the importance of whistleblowers in bringing such schemes to light.