Italian tax police target Bulgari luxury jewellers in Rome after newspaper reports brand did not declare £57m
Italian police have carried out checks at Rome jeweler at Bulgari in order to assess whether the group owned by French luxury conglomerate LVMH regularly declared income tax in Italy. LVMH Moët Hennessy, Louis Vuitton S.A., better known as LVMH, is a French multinational luxury goods conglomerate, headquartered in Paris. The company was formed after the 1987 merger of fashion house Louis Vuitton with Moët Hennessy, a company formed after the 1971 merger between the champagne producer Moët & Chandon and Hennessy, the cognac manufacturer. It controls around 60 subsidiaries that each manages a small number of prestigious brands. The subsidiaries are often managed independently. Italian authorities have strengthened their efforts to collect taxes during this year. They have already targeted foreign companies, such as Google and Facebook to assess whether their Italian divisions are paying their taxes.
The Corriere della Sera reported that police completed a tax inspection on the previous week, alleging Bulgari did not declare income in Italy to the tune of around 70 million Euros (£57m). Bulgari is based in Rome and they are creating magic since 1884 of renowned fine jewellery. At present it is a global and diversified luxury brand with a product and services portfolio of jewels, watches, accessories, fragrances, skincare, hotels and resorts featuring exceptional quality, an innovative style and impeccable service.
‘We have always complied with fiscal regulations in Italy and abroad,’ Bulgari family member Francesco Trapani, who heads LVMH’s jewellery and watch division, told the newspaper. The report stated by them, cites a police document, said controls focused on the last five years through 2011. It is the year when LVMH bought Bulgari in an all-share deal worth 3.7 billion euros. Trapani said Bulgari has always collaborated with Italian authorities and emerged unscathed from past fiscal controls. Bulgari was not immediately reachable for further comment.