Dolce and Gabbana Tax Evasion Charges
Fashion designers and business partners Domenico Dolce and Stefano Gabbana have been indicted on tax-evasion charges.
According to WWD, Dolce and Gabbana each allegedly owe 416 million euros, or $569 million.
The designers are expected to settle out of court and pay a fine or the case will go to trial in Milan and they’ll risk owing up to $1 billion and could possibly spend up to three years in prison.
The designers are accused of setting up a holdings company in Luxembourg in order to evade high Italian taxes.
Dolce and Gabbana said in a 2009 statement,
“It’s a paradox! Since when does one have to pay taxes on money one never actually collected. It’s an absurd demand based on a completely abstract calculation. This higher taxable sum is a virtual figure we have never received, the result of a theoretical accounting exercise.”
The fashion duo now await a preliminary hearing date.