Giorgio Armani has paid upwards of $350 million to Italian authorities to settle its ongoing tax evasion dispute, stemming from 2002-2009 payments from the group's subsidiaries abroad. As of now, all claims against the company have been dropped. This is the latest of a string of Italian houses facing tax evasion charges.
According to sources, Italy has become more interventionist on taxes during its longest recession since World War Two. Prada's parent company, Prada Holding, paid nearly $600 million to settle tax evasion charges in Italy after completing a process of voluntary disclosure in December. Bulgari and ex-Valentino chairman, Matteo Marzotto, have been slapped with tax evasion charges. And of course, there is Dolce and Gabbana, whose founders were convicted of hiding hundreds of millions of dollars from tax authorities. They have appealed the ruling and the verdict is due on April 30th.