Prada's CEO's under investigation for tax evasion

Miuccia Prada and Patrizio Bertelli, co chief executive officers of Italian fashion house Prada are currently under investigation

by Italian authorities on the suspicion of tax evasion.

In a statement published on the Hong Kong Stock Exchange, where the luxury fashion company is listed, the company stated that the two are part of an “ongoing examination” in regard to “the accuracy of past tax filings by them as individuals in respect of foreign owned companies.”

The alleged tax evasion is suspected to have taken place during the 10 years the holding company was based in Luxembourg, and the investigation comes after Prada signed a deal with Italian tax authorities to relocate its holding company from Luxembourg back to Italy in December 2013.

Prada chairman Carlo Mazzi, who signed the company statement added that “neither the company nor any of its subsidiaries was or is involved in this matter.” The investigation is the latest tax probe launched by local tax authorities and follows other investigations of luxury companies including Dolce & Gabbana, Bulgari and the Marzotto textile firm.