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Tax evasion charges are never fashionable

September 30, 2014

Fashionistas are wrapping up a month of shows that have taken them from New York to London to Milan and now Paris.

One big name designer, however, might not be paying as close attention as usual to the City of Light's catwalks this week. A couple of Prada executives have taxes instead of tailleur on their minds.

Paris Fashion Week via PFWLive
A month of global fashion weeks, during which designers preview their coming spring and fall clothing lines, concludes this week in Paris. Click the image for a glimpse of what the rich and famous might be wearing in early 2015.

Prada chairwoman Miuccia Prada Bianchi and her husband and company chief executive officer Patrizio Bertelli are being investigated by Italian authorities over past taxes.

The Italian Judicial Authority informed the couple that it has questions about alleged tax evasion related to the 10 years that Prada was based in the notorious tax-haven country of Luxembourg. Specifically, Italy's tax officials are interested in "the accuracy of certain past tax filings by them as individuals in respect of foreign-owned companies."

The company itself was the target of a tax investigation last year, after which Prada returned its holding company to Italy to appease the tax authorities. The haute couture company and its subsidiaries are not involved in this investigation.

The examination of the Prada executives is the latest look by Italian tax officials at alleged fashion house tax hi-jinks.

Domenico Dolce and Stefano Gabbana, founders of the eponymous Dolce & Gabbana fashion line, were convicted last year of tax evasion. They appealed and in April the two Italian designers were each given a reduced, suspended sentence of 18 months in jail.

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The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

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TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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