MILAN — The Prada Group is one of the few Italian companies that has been admitted to the cooperative compliance regime with the Italian Tax Authority, in accordance with a legislation dating back to 2015. This allows to have an ongoing dialogue in full transparency with the country’s Tax Authority significantly decreasing fiscal risks. “It’s a very important and positive step. This is a sort of preventive management of tax issues and allows more stability and certainty on tax matters,” said a fiscal source. This also means that Prada will no longer deal with the Guardia di Finanza, an Italian police force under the authority of the national minister of economy and finance, but only with the Tax Authority.
“Adhering to this regime is part of the broader tax strategy of the Prada Group, which has always been based on risk prevention and commitment to promote a business culture based on fairness and compliance with the law,” stated the company on Thursday.
This represents an important milestone in the path of cooperation and mutual trust started by Prada with Tax Authorities long ago, being increasingly aware that a transparency-based tax risk management is beneficial to all the group’s stakeholders.”
It is understood this is not related to the tax issues Miuccia Prada and her husband Patrizio Bertelli had in the past. Last year, Milan prosecutor Gaetano Ruta has asked a judge here to dismiss an investigation targeting Prada and Bertelli for alleged tax evasion. A legal source at the time said Ruta believes the couple “are objectively not to be punished” because they have paid back their fiscal debt.
As reported, in 2014 Italy’s tax authorities started investigating the designer and her husband, co-chief executive officers of Prada SpA, in reference to “the accuracy of certain past tax filings” relating to foreign-owned companies. This followed a “voluntary disclosure” the couple made to tax authorities in December 2013 that resulted in an agreement with Italian tax officials.
“This agreement completely satisfied the claims of the Italian tax authority, as declared and confirmed by the authority itself,” argued the company, adding that neither the firm nor any of its subsidiaries was or is involved in the matter.
It is understood that Bertelli and Prada in 2013 paid 470 million euros to the tax office. Legal sources at the time emphasized that the designer and Bertelli had advised on the existing tax anomalies, brought back the legal headquarters of the company to Italy and paid the back taxes. Any transaction with Italy’s tax office starting from a sum as low as 100,000 euros is declared to the prosecutors as a standard procedure.