Vivienne Westwood Less Profit Squeezed

"Empress Dowager" Namesake brand Vivienne Westwood submitted last year's earnings report, annual Ready-made clothes Sales of leather goods and perfumes reached 32 million, up 8.4% from last year, but pre tax profits fell from 3 million 200 thousand last year to 2 million 900 thousand. The company said: "2014 is a challenging year. Margins are still under pressure. "

In March of this year, Viviennewestwood was hit by tax evasion, adopting the popular tax avoidance method, namely, in the low tax Offshore Company Registry. Starbucks, Zara, Valentino, Dolce&Gabbana and Net-a-porter are all used to avoid tax by this method. The tax avoidance case of Dolce & Gabbana has been entangled for seven years. The court of appeal upheld the judgment last May, but was finally acquitted after appealing to the Supreme Court.

In 2002, Viviennewestwood sold branded trademarks to Luxemburg, mostly Luxemburg, at a price of 840 thousand pounds. The following year, Latimo bought the former Latimo. parent company However, the actual controlling shareholder of the two companies is empress dowager himself. The copyright fees generated between the two companies are successfully evasion, and will also affect the profits on the books of Viviennewestwood, which is well understood because of increased expenses.

However, agency fees are decreasing year by year, which was 1 million 600 thousand pounds last year, down 17% compared with the previous year, and the 160 corporate income tax is 64.6 pounds.

As for tax avoidance, the company has a strong attitude and expresses its full compliance with British tax regulations. But the greens, who donated 300 thousand pounds to the empress dowager, do not think so. In a campaign campaign in February 13th, the party said they would introduce the TaxDodgingBill tax evasion bill 100 days after the election to punish those who had evade taxes through Off Shore Company.

However, profit margins are largely squeezed by tax avoidance.

But since it is a common tax avoidance method and whether it is illegal or not, it actually depends on the different tax laws and regulations of different countries. Maybe the Empress Dowager wants to play a scratch ball, but after the real policy, it may be different. For the future expansion plan, the company has publicly stated that it will adjust its style positioning and price range, and is doing online shopping business.