Italian authorities probe Prada family's tax affairs

The Italian luxury fashion brand Prada has revealed that the personal finances of the company’s two founders are being investigated by Italian authorities for alleged possible past tax evasion offences

In a statement Prada, which is listed on the Hong Kong stock exchange, said Miuccia Prada and her husband Patrizio Bertelli, who are the chief executive officers, as well as executive directors and substantial shareholders have been informed by the Italian Judicial Authority of the existence of an ongoing examination.

According to the statement, the investigation relates to the ‘accuracy of certain past tax filings by them as individuals in respect of foreign owned companies’. The company said that neither it nor any of its subsidiaries was or is involved in this matter.

Prada said the investigation follows a voluntary disclosure made by Prada and Bertelli in December 2013, when the company brought its holding company back to Italy from Luxembourg.

According to the company, this disclosure resulted in an agreement between them and the Italian tax authority which, it said, ‘completely satisfied the claims of the Italian tax authority, as declared and confirmed by the authority itself.’

This latest tax probe follows new Italian voluntary disclosure terms designed to encourage companies to return from tax havens in Luxembourg, Switzerland and the Netherlands. 

It also marks another investigation into high-profile brands, as last year the Italian tax authorities launched an investigation into the tax affairs of the designers Domenico Dolce and Stefano Gabbana who founded Dolce & Gabbana.

Pat Sweet |Reporter, Accountancy Daily [2010-2021]

Pat Sweet was the former online reporter at Accountancy Daily and contributor to the monthly Accountancy magazine, pub...

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