Prada Group Starts To Get Rid Of Tax Bill Trouble And Start Cleaning Up Enterprise Structure.

After solving their tax bill, Miuccia Prada and Patrizio Bertelli are starting to clean up the enterprise structure of Prada.

Last year, designers and her husband and the Italy tax authorities began to settle their arrears in the head office of Luxemburg.

Prada SpA said that it would pfer its legitimate headquarters to Italy.

The company said Wednesday that Prada Holding BV and Prada SpA will be incorporated into Gipafin Sarl in December.

After the merger, Prada Holding BV will no longer exist. The company's new direct holding company Gipafin Sarl will be renamed Prada Holding Sarl, and its legal seat will be pferred from Luxemburg to Italy.

The company said the restructuring was aimed at simplifying the company's control structure and had no impact on the Prada group.

Prada Holding BV holds approximately 80% of the issued share capital of the company, while Prada Holding BV is wholly owned by Gipafin Sarl.

Miuccia Prada and Patrizio Bertelli

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This is the latest move in the group's streamlining of assets.

According to reports, Prada and her husband Bertelli paid 470 million euros, or $643 million 900 thousand, to the tax authorities.

Prada and Bertelli made voluntary information disclosure to tax authorities in December to facilitate their agreement with the Italy tax authorities.

They made recommendations on current tax anomalies and paid a backup tax.

"This Agreement fully meets the claims of the tax authorities in Italy, such as declaring and confirming by the authorities that what they have said," the designer and her husband who were disclosed in September and the foreign-related enterprises' "accuracy declaration of some past taxes" were investigated.

The investigation is expected to be completed by the end of this year.

Prada 2015 spring summer series

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Agenzia delle Entrate has claimed that Prada Holding BV was founded in Holland and Luxemburg subsidiaries to benefit from more favorable tax rates, but they do not really operate in the country.

Last December, Prada revealed that "following the strategic decision of the company to choose Italy as its business hub, it has completed a voluntary disclosure process."

At that time, a high ranking legal personage said that the survey carried out the "standard procedure" in view of the amount involved, which amounted to more than 600 million US dollars.

Any paction with Italy Agenzia delle Entrate will be automatically sent to the prosecutor's office starting from a minimum of 100 thousand euros (i.e. 126 thousand and 500).

The group was allowed to be designated as a non Italian company repatriation on the basis of all the tax obligations in the past 10 years and the cooperation with the Italy tax authorities.

The Italy luxury group's shares are listed on the Hongkong stock exchange.