Tue, Sep 30, 2014 - Page 15 News List

Prada CEOs face Italian probe over individual tax filings

Bloomberg

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 yesterday.

“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.

Prada fell 0.9 percent to HK$47.85 at 3:53pm in Hong Kong trading, amid a broader slump in the territory’s shares as democracy protests led the benchmark Hang Seng Index to drop as much as 2.5 percent.

Other Hong Kong-listed luxury retailers also fell, including Luk Fook Holdings International Ltd (六福珠寶集團), which plunged 4.6 percent, and Chow Tai Fook Jewellery Co (周大福珠寶), which was down 1.2 percent.

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

Three telephone calls made to Prada’s Hong Kong-based head of regional investor relations Cynthia Cheng were unanswered.

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.

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