Luxury clothing and accessories brand, Gucci is in hot waters with the Italian tax authorities. Kering SA, the French owner of the Gucci brand, allegedly owes 1.4 billion euros to Italy in back taxes, according to a government audit. Italian authorities opened a probe into Gucci’s taxes in 2017, which scrutinized business activities by Kering’s Swiss subsidiary, Luxury Goods International. Kering says it will contest the findings of the Italian audit.

The auditor’s report will be reviewed by Italy’s revenue agency which will then make a final conclusion. Citi analysts have estimated that Kering could face a settlement of 1.3 billion to 2 billion euros from the probe.

The French news site, Mediapart, reported that the company billed for business carried out in other countries in Switzerland, where it paid lower tax rates than it would have in Italy.