The Italian tax authorities are investigating Miuccia Prada and Patrizio Bertelli, joint chief executives at Prada, for tax avoidance.
That’s according to a company statement this morning. The company insists that it is not involved directly in the matter. The investigation relates to the “accuracy of certain past tax filings by them as individuals in respect of foreign owned companies”
The release says the husband and wife executive team made a “voluntary disclosure” to the tax authority in December last year, even though they officially denied the existence of any investigation in January this year, as reported by Reuters, which cited three sources saying Milan prosecutors were looking into the Prada family.
Prada shares dropped 0.83% during the day — the company is listed in Hong Kong, so the announcement came after trading closed. But the combination of Hong Kong’s enormous democracy protests and worries over the company’s leadership might mean some ugly days ahead for the company.
Italy, like most other cash-strapped countries, has made more of an effort on tax avoidance since the 2008 financial crisis. In the past, that’s included just stopping people in expensive cars to work out how much they earn.