- Kristopher Fraser |
Prada has signed a cooperation agreement with Italy's tax authorities according to Business of Fashion.
This practice is known as cooperative compliance regime. Basically, there is an exchange of information between the company and authorities to avoid disputes and help businesses avoid tax demands. According to a PwC report, the cooperative compliance regime initially launched in Italy in 2013 as a pilot project, and was introduced by Law Decree no.128/2015 with the purpose to promote new forms of communication and enhanced cooperation between the Tax Administration and taxpayers, as well as to prevent and resolve tax controversies.
Prada said the move would "strengthen the level of certainty on the most relevant tax matters".
Prada has been known to have their share of tax problems in the past. Last December, Prada's chief executive Miuccia Prada and her husband co-CEO Patrizio Bertelli found themselves under investigation for tax issues. Prosecutors asked the judge to drop the investigation.
The investigation was opened after the Prada family holding company completed a process of voluntary disclosure. As a result, they repatriated assets it held in Luxembourg and the Netherlands.