Articles and News

Bvlgari, Steinmetz Chased For Back Taxes

Milan, Italy—Renowned luxury jeweler Bvlgari could be in hot water with Italian tax authorities, Womens’ Wear Daily reports. According to the paper, the jeweler could be on the hook for more than 70 million euros (US $92 million.) WWD reports the inquiry is focusing on recent years, especially 2011, when the jeweler was acquired by luxury conglomerate LVMH. Italian authorities are alleging that some of Bvlgari’s revenues are being redirected through holding companies to Ireland and Luxembourg, instead of being declared in Italy as law requires for an Italian-based company. The jeweler did not respond to WWD for comment.

Separately, Rapaport reports that Beny Steinmetz of Beny Steinmetz Diamonds is contesting a $1.07 billion tax bill from the Israel Tax Authority, and that Israeli authorities had noticed some discrepancies dating back as far as 1997 and had wanted to begin an investigation as early as 2009. IDEX says authorities are contesting Steinmetz’s claim that he is only an advisor to the company that bears his name but he doesn’t own or control it. Under Israeli law, a company owned or controlled by an Israeli citizen is subject to Israeli taxes. According to the report, Steinmetz had in the past acknowledged that he formed the entities—at the time not a taxable action—but when the law changed, he said the company was formed by a Belgian and that he himself had relocated from Israel to Geneva, Switzerland.

Breaking News: Peter Smith Joins Leo Schachter

New York, NY—Peter Smith has been appointed executive vice president of brand development at Leo Schachter Diamonds. Prior to joining the firm, he served in a similar capacity for 10 years at Boston, MA-based Hearts On Fire.

Tiffany Renews Partnership With Elsa Peretti

New York, NY—Tiffany & Co. has renewed its long-standing relationship with Italian designer Elsa Peretti, creator of the retailer’s famed (and frequently knocked off) teardrop, circle (photo, top), bean, and “Diamonds By The Yard” designs. Tiffany has been the sole licensee to make and sell jewelry under the Elsa Peretti trademark since 1974, and according to reports, the designer’s merchandise—which features fluid, organic forms—accounts for about 10% of the firm’s net sales. Earlier this year, the designer, 72, was said to be considering retiring from the relationship.

Richline Acquires Rio Grande

Albuquerque, NM—Rio Grande, the tool supplier owned by the Bell Group, has been acquired by Richline Group, Inc., a division of Berkshire Hathaway Inc. The acquisition was effective has the pleasure to announce the acquisition, effective January 1, 2013, and includes Rio Grande’s Neutec branded equipment as well as its other lines and programs.

In the new corporate structure, Alan Bell and Molly Bell will remain to run the company as president and executive vice president, and the business will continue to operate as it has in the past. Eddie Bell will continue to oversee the Santa Fe Symposium educational conference and Neutec.

Dave Meleski, Richline Group’s president, said, “a key goal of this acquisition is that with our financial support and collaboration, Rio Grande will be able to meet the future challenges of the jewelry industry.” Rio Grande will be a stand-alone business, as are Richline’s other recent acquisitions, LeachGarner and Inverness.