Business

Prada bosses under investigation for alleged tax evasion

Prada models Image copyright EPA
Image caption Prada shares have also lost 30% of their value this year because of weak investor sentiment

Prada's two chief executives are being investigated by Italian authorities for possible tax evasion, the company said.

Miuccia Prada and Patrizio Bertelli are being examined over "the accuracy of certain past tax filings by them as individuals in respect of foreign-owned companies", it said in a statement.

The inquiry comes after Prada disclosed it was bringing its holding company back to Italy from Luxembourg in 2013.

The alleged tax evasion stems from the 10 years they were based in Luxembourg.

"Neither the company nor any of its subsidiaries was or is involved in this matter," Prada chairman Carlo Mazzi said in a statement to the Hong Kong Stock Exchange, where the company is listed.

The luxury fashion house has seen weak sales in Asia and Europe this year, which led to a 21% drop in first-half profit.

Prada shares fell by nearly 2% on Monday. They have lost about 30% of their value this year.

This is not the first time Italian tax authorities have targeted high-profile brands. Last year fashion designers Domenico Dolce and Stefano Gabbana, also known as Dolce & Gabbana, were investigated.

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