By Jonathan Davies

The two chief executive of Prada are being investigated for alleged tax evasion by Italian authorities.

In a statement, Prada said Miuccia Prada and Patrizio Bertelli are being investigated over "the accuracy of certain past tax filings by them as individuals in respect of foreign-owned companies".

It comes after the luxury fashion brand revealed it was bringing its holding company back to Italy, from Luxembourg in 2013.

The alleged tax evasion came during the holding company's 10 years in Luxembourg.

"Neither the company nor any of its subsidiaries was or is involved in this matter," Prada chairman Carlo Mazzi said in a statement to the Hong Kong Stock Exchange, where the company is listed.

Prada's shares fell 2% on the news in early trading. The brand's share price is down 30% this year.

It recently reported weak sales in Europe and Asia, leading to a 21% drop in half-year profits.

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