Prada Under Investigation By Italian Tax Authorities

Fashion designer, Miuccia Prada, and her husband, Patrizio Bertelli, are under investigation by the Italian Tax Authority for tax evasion pertaining to Prada’s namesake brand, Prada SpA and tax paperwork that the company filed relating to foreign owned companies.

Prada SpA released a statement explaining that both Prada and Bertelli voluntary disclosed to the Italian Tax Authorities in December 2013 regarding certain issues about the company, and that these disclosures led to an agreement between the husband and wife and the Italian Tax Authority.

Prada_store_in_Singapore

Prada store in Singapore” by 22Kartika 

In January of this year, Women’s Wear Daily reported that the pair were under investigation for unfaithful earnings declaration, and that the husband and wife paid $643.9 million to the tax office.

The Italy Tax Authorities contends that Prada had set up subsidiaries in the Netherlands and Luxembourg, but continued to operate the brand’s business out of Italy. The tax authority claims that Prada did so in order to benefit from a more favorable tax rate.

In December, the Italian fashion house announced that it had completed a “voluntary disclosure procedure” which culminated with a decision to base the company’s business operations in Italy.

The Italian government has been cracking down on several Italian luxury brands for tax evasion or fraud. In April, the Armani Group settled their tax audit where the group agreeing to pay a settlement of $373 million. The duo design team behind Dolce & Gabbana were recently found guilty of tax evasion. It seems the Italian government is taking no prisoners when it comes to tax evasion or fraud.

source: “Italian Tax Authorities Target Miuccia Prada and Patrizio Bertelli,” Women’s Wear Daily. 

Beeta J.

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