Miuccia Prada is in the hot seat. According to WWD, the designer and her husband, Patrizio Bertelli, are being investigated by Italian authorities for unethical tax practices, including possibly setting up subsidiaries in the Netherlands and Luxembourg in order to secure a more favorable tax rate.
The news first made headlines in December 2013 when Prada announced the completion of a voluntary disclosure procedure that “completely satisfied the claims of the Italian Tax Authority.” That basically entailed forking over approximately $643.9 million in back taxes. One month later, the company denied being under investigation, but it looks like the tide has turned.
Currently, Italy is working on a law to promote voluntary disclosures that would result in fines rather than penal consequences, which are hanging over companies like Dolce & Gabbana.