Kering has agreed to €1.25 billion tax payment in order to settle a dispute with Italian tax authorities.
Luxury Goods International, a subsidiary of Kering, has been under investigation for avoiding tax on earnings made by Gucci in particular, in Italy between 2011 and 2017.
"The group has concluded today a settlement with the Italian Revenue Agency relating to claims vis-a-vis its Swiss subsidiary," Kering said in a statement. "The settlement will involve the payment of 897 million euros in additional taxes, along with further payment for penalties and interest."
This will become the largest settlement ever agreed by a company with Italian Tax Authorities.
