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Prada Confirms It Is Under Investigation by Italian Tax Authorities

After denying reports that key execs were under investigation for tax evasion in January, Prada has issued a statement confirming investigations are taking place.

At the beginning of this year, reports circulated that designer Miuccia Prada, Prada CEO Patrizio Bertelli and accountant Marco Salomoni were under investigation by Italian tax authorities for tax evasion. At the time, the company claimed it was not aware of such an investigation.

The company, it seems, has since become aware. In a press release issued Sunday, it confirmed that it had been informed of an ongoing examination by the Italian Judicial Authority.

Authorities are looking into the accuracy of past tax filings “in respect of foreign owned companies,” according to the release.

The company said that "neither the company nor any of its subsidiaries was or is involved in this matter" and reiterated that a previous voluntary disclosure by Prada and Bertelli resulted in an agreement that “completely satisfied the claims of the Italian Tax Authority, as declared and confirmed by the Authority itself.” Prada had agreed to relocate companies in the Netherlands and Luxembourg (both lower-tax regions) back to Italy and pay 420 million euros in backdated tax. Seemingly, the company’s ducks are all in a row.

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Italian tax authorities have proven themselves a force to be reckoned with, having recently seized over 46 million euros in assets from Bulgari executives and, most famously, sentenced Domenico Dolce and Stefano Gabbana to 18 months in prison for tax evasion.