A scandal that has cast a pall over Gucci’s blockbuster turnaround is spreading as Italian fiscal authorities probe more than a dozen of the luxury brand’s current and former executives over an alleged tax-avoidance scheme.
Gucci owner Kering SA agreed to pay 1.25 billion euros ($1.4 billion) in May this year to settle an investigation of the brand’s tax payments from 2011 to 2017. Italian authorities alleged that the luxury label funneled revenue through a Swiss logistics center to avoid paying higher rates in Italy.