Prada owners under tax fraud investigation in Italy
Italian fashion designer Miuccia Prada and her husband, Prada Group CEO and fellow shareholder Patrizio Bertelli, are under investigation as part of a tax avoidance probe by Milan prosecutors, three investigative sources told Reuters on Friday.
Prada Group said in December it had completed a process of voluntary tax disclosure and planned to bring back to Italy assets held abroad, primarily in low-tax Netherlands – where the holding company was previously based – and Luxembourg.
Prada Group is the latest in a series of high-profile firms to land in the crosshairs of Italy’s tax authorities, which have become more interventionist as economic crisis erodes their revenues. U.S. tech giant Apple came under investigation in Italy in November, and fashion designers Domenico Dolce and Stefano Gabbana were given 20-month suspended prison sentences and a fine in June. All denied any wrongdoing.
Italy’s Corriere della Sera newspaper said on Friday Prada and Bertelli had paid 420 million euros ($571 million) to Italy’s tax agency to settle their tax affairs. The paper also said the two were under investigation despite the settlement.
Later on Friday, Italy’s government tax agency issued comments from a senior official saying it had concluded its own checks into the tax affairs of Prada’s shareholders and all money owed, including penalties and interest, had been paid. However, under the Italian legal system, the payment of tax penalties does not prevent magistrates from launching their own investigation. Shares in Prada, which is listed in Hong Kong, closed down 3.9 percent earlier on Friday.
Prada chief financial officer Donatelli Galli said on a conference call in December the company had had “strong and continuing” discussions with Italian authorities and had agreed to pay to avoid further penalties. Galli said there was no litigation underway at the time.