Prada's CEOs Under Investigation Over Tax Filings

MILAN, Italy — Prada S.p.A. said its chief executive officers are being investigated by the Italian Judicial Authority over the accuracy of past tax filings as individuals.

Miuccia Prada and Patrizio Bertelli were informed of the examination by the authority "regarding the accuracy of certain past tax filings by them as individuals in respect of foreign- owned companies," Milan-based Prada said in a statement to the Hong Kong Stock Exchange today.

“The company confirms that neither the company nor any of its subsidiaries was or is involved in this matter,” Chairman Carlo Mazzi said in the statement.

The luxury brand said a previous voluntary disclosure by the CEOs had led to an agreement that “completely satisfied the claims of the Italian Tax Authority,” according to the statement.

Calls to Prada’s Hong Kong-based head of regional investor relations Cynthia Cheng weren’t answered.

Prada rose 0.2 percent to HK$48.30 at the close of trading in Hong Kong on Sept. 26. The shares have plunged 30 percent this year, compared with the 1.6 percent gain in the benchmark Hang Seng Index.

The handbag maker reported a 21 percent decline in first- half net income earlier this month as demand in Asia and Europe remained weak, joining LVMH Moet Hennessy Louis Vuitton SA and Gucci-owner Kering SA, which also reported declines in first- half earnings.

By Vinicy Chan; editors: Daryl Loo, Dave McCombs.