Kering reached a settlement with the Italian tax authorities totaling €1.25 billion, the highest ever agreed by a corporation in Italy and a little lower than what had been expected. The dispute concerned profits and transfer prices applied between 2011 and 2017 by the group's Swiss subsidiary, Luxury Goods International, and Gucci, the rapidly growing Italian fashion house owned by the French luxury group. According to the Italian media, Kering used LGI as an international transit point for Gucci's products in order to pay an income tax of less than 9 percent on the related revenues, but it was not the only company to do so. The settlement will involve the payment of €897 million in additional taxes, along with further payments for penalties and interest. Based on an initial estimate, Kering said that the agreement should impact its 2019 results with an additional tax charge of around €600 million in the income statement and a cash outflow of €1,250 million.