Gucci is in hot water again, and this time it’s with the feds.
One of the hottest luxury brands in the world right now is in some pretty dark water with the Italian federal government. According to Reuters, the Gucci head offices in Milan and Florence were visited by the Italian tax police. The visit was prompted by an investigation by prosecutors who believe the fashion brand has committed tax evasion.
In a statement made by email to the Italian Daily La Stampa, Gucci confirmed the visit by the tax authorities while firmly taking the stance that they are working with the authorities and are being transparent with their activities.
“Gucci confirms that it is providing its full cooperation to the respective authorities and is confident about the correctness and transparency of its operations,”
According to an anonymous source who spoke with Reuters, the company paid their taxes for the revenue generated in Italy, but it is suspected that they did so in another country with better tax incentives.
This isn’t the first time this year Gucci has been in legal troubles, there have been several cases involving allegations of plagiarism, as well as Gucci suing Forever 21 over their trademark stripes.
The old Biggie quote ‘More money, more problems” seems to be very accurate for the company that has just recently become a significant player again in the luxury world. The brand was in a state of limbo for quite a few years while brands like Louis Vuitton, Chanel, and Prada were steady in popularity and sales.
It wasn’t until the new creative director Alessandro Michele took over, that the brand started to bounce back and come back into the limelight.
This story is ongoing, and we will continue to keep you updated with the latest news.
Watch: Gucci Spring Summer 2018 Fashion Show