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Italy Targets Prada Fashion House for Alleged Tax Evasion

Italian tax authorities seem to be setting a new fashion -- targeting famous designers.First it was Dolce & Gabbana. Now, Italian designer Miuccia Prada and her husband, Prada chief executive Patrizio Bertelli, are under investigation as part of a tax evasion probe by Milan prosecutors, three investigative sources told Reuters on Friday. A spokesman for lawyers representing Prada Holding, through which Miuccia, her siblings and husband control the luxury group, said he was not aware of the investigation. Milan's public prosecutor's office declined to comment. Prada Holding said in December it had completed a process of voluntary tax disclosure and planned to bring back to Italy assets held abroad, primarily in low-tax Netherlands - where the holding company was previously based - and Luxembourg. Prada Holding is the latest in a series of high-profile firms to land in the crosshairs of Italy's tax authorities, which have become more interventionist as economic crisis erodes their revenues. Designers Domenico Dolce and Stefano Gabbana were given 20-month suspended prison sentences and a heavy fine last June. They denied any wrongdoing.