Bvlgari Accused of Tax Evasion in Europe
Bvlgari is being investigated for tax evasion.
The Italian jewelry brand is accused of avoiding tax payments of more than £57 million, with an investigation by local law enforcement, the Guardia di Finanza, particularly looking into the company's finances since it was taken over by French organization LVMH in October 2011.
It is alleged that the luxury jewelry company - which was bought using both cash and stock reportedly worth £3.6 billion - has rerouted revenues to Luxembourg and Ireland through holding companies, instead of declaring its profits in the company's native Italy, according to WWD.
Bvlgari have denied the charges, but an investigation is still ongoing.
LMVH watches and jewelry division president Francesco Trapani said: ''We have always complied with fiscal regulations in Italy and abroad.''
LMVH also owns and operates luxury brands such as fashion house Louis Vuitton, champagne producer Moet, and cognac producer Hennessy.
Dolce & Gabbana's Domenico Dolce and Stefano Gabbana were recently accused of evading taxes and are facing trial on similar charges in the Italian capital of Milan.
© Bang Showbiz
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