Fashion designer Miuccia Prada, granddaughter of company founder Mario, is investigated over £400million tax evasion

  • Miuccia Prada, 64, named on court papers filed by Italian taxman
  • She is current chairwoman of the company her grandad Mario founded
  • Authorities allege company moved assets abroad to avoid tax

By Hannah Roberts In Rome

PUBLISHED: 10:51 EST, 10 January 2014 | UPDATED: 16:02 EST, 10 January 2014


Miuccua Prada is being investigated over allegations her company moved assets abroad in order to avoid tax

Miuccua Prada is being investigated over allegations her company moved assets abroad in order to avoid tax

The chairwoman of Prada is facing an investigation after it was alleged the company avoided nearly £400million in tax by transferring services abroad.

Miuccia Prada, 64, whose grandfather founded the luxury label, allegedly transferred the seat of the label to holding companies abroad, to avoid paying around £390million (€470million) to the Italian authorities.

The Milan-based company is famous for its fine leather handbags and is a favourite with celebrities such as Sienna Miller and Kate Middleton.

Company chairman Miuccia Prada, Chief Executive Officer Patrizio Bertelli and accountant Marco Salomoni have all been named in the prosecutors probe into alleged undeclared or false tax claims.

The transfer of Prada Holding, the controlling shareholder of the house, to the Netherlands and notorious tax haven Luxembourg, was purely to ensure the company a more favourable taxation, Italian Inland Revenue allege, newspaper Corriere della Sera reported.

At the end of last month, Prada agreed with the tax authorities to return its seat to Italy and pay backdated tax, claiming that it wanted ‘to invest in Italy’ to help the economic recovery.

Mr Bertelli said: ‘We are very pleased to have taken this strategic decision, consistent with our desire to invest on Italy.'

Milan prosecutors started investigating a few days ago when they were notified by the taxman that the luxury-goods company disclosed undeclared taxable income.

Italian fashion house Prada is being investigated for tax evasion
Miuccia Prada is the current Chairwoman of Prada, founded by her grandfather

Supporting economy: The fashion house has now moved its HQ back to Italy and claims it will repay all backdated tax in order to 'invest in' the country

Lawyers for Milan-based Prada said the company wasn’t aware of a probe by Italian authorities and that documents regarding the allegations have been submitted to prosecutors.

'As it stands we are not aware of there being an investigation,' Stefano Simontacchi and Guido Alleva said in an e-mailed statement.

'In any case, the new rules which are expected to enter into force regarding voluntary disclosure should be considered applicable to the present case, thereby leading to decriminalisation,' the lawyers said.

The investigation follows efforts to clamp down on tax avoidance in Italy, after experts revealed that an estimated £90billion a year was lost in undeclared revenues. 

Last July, the two designers Domenico Dolce and Stefano Gabbana were sentenced to one year and eight months in prison for non-declaration of income.



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Tax avoidance is not illegal , Tax evasion is. Nice headline though.

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Oh, come on! It's only 700 million. Let her go! The sweatshop workers who work for her around the world will work it off and pay the Italian government back with their taxes.

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Italian fashion designers are such stunners, aren't they. Donatella Versace as well, mmmm.

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So this is why Prada is so over priced!

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She's going to jail just like Dolce & Gabbana.

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I would like to suggest she let's H+R Block handle her taxes this year. They did mine last year end I didn't have to send anything overseas and got a refund of $1,500.

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LOL...

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and the rich get richer.... with any luck she'll go to prison.... should be an eye opening experience for princess Prada to pee in a cell .. out in the open... no gold faucets... no marble.... no satin and lace... nope... that's what she needs.

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I agree.Martha Stewart went to jail for much less.

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Considering that government started out as the most successful band of bandits in any given area, tax evasion = theft avoidance!

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She'll get a slap on the wrist!

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I like Prada. But why are they going after people like this. Did she steal the money...no her company earned it. Why should the government suck it all away?

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I agree. But considering she was a member of the Italian Communist party and still views herself as something of a Marxist this smacks of enourmas hypocrisy.

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