Press Note

Ponzano, February 1, 2011. Benetton Group S.p.A., referring to the press release by the Tax Authorities of the Veneto Region reported in many newspapers, affirms having received a notice of assessment, which disputed the deductibility of fees for agency services to agents who have decided to locate their companies in the Isle of Man.

The contestation is based on an interpretation of the tax regulations which we believe to be distorted and formalistic, since the Benetton Group has paid fees for services actually provided, which are absolutely identical in amount to those paid to all other agents, both of these facts having been confirmed by the tax investigations themselves. Benetton, therefore, is being censured purely for having elected to work with foreign agents who invoice their services from certain countries, although Benetton, the user of the services, has not been able to intervene in any way in the organizational decisions of such agents. The extraneous and third party nature of foreign agents in relation to the Benetton Group is indisputable, this having also been confirmed by the tax inspectors themselves.

Firmly convinced of the correctness of our conduct, which was in no way detrimental to the Italian Revenue authorities, since identical fees would also have been paid to agents who were not based in the Isle of Man, the Benetton Group will lodge an appeal to the Supreme Court against the judgement of the Veneto Region Tax Tribunal.

For further information:

+39 0422 519036
press.benettongroup.com
benettonpress.mobi

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