Dolce And Gabbana Sentenced To 20 Months In Jail For Hundreds Of Millions In Tax Evasion
The latest casualty of Europe’s berserk pursuit of tax evaders everywhere: not some Russian oligarch with a $1 billion Cypriot bank account but famous Italian designers, Dolce and Gabbana. WSJ reports that a Milan court has convicted the designers Domenico Dolce and Stefano Gabbana of tax evasion. The pair were found guilty Wednesday of failing to declare €1 billion ($1.3 billion) in income tax to authorities. The court sentenced them both to one year and eight months in jail.
Dolce and Gabbana face verdict on alleged tax evasion
An Italian court is expected to rule on Wednesday on whether legendary fashion duo Domenico Dolce and Stefano Gabbana should be sent to prison for allegedly hiding hundreds of millions of euros from the tax authorities.
The case, one of the few prominent tax disputes to go to court in Italy, dates back to 2004, when the pair sold their brand to Luxembourg-based holding company Gado to allegedly avoid declaring taxes on royalties of about 1 billion euros ($1.3 billion).
Dolce and Gabbana Convicted of Tax Evasion
A Milan court has convicted the designers Domenico Dolce and Stefano Gabbana of tax evasion.
The pair were found guilty Wednesday of failing to declare euros 1 billion ($1.3 billion) in income to authorities. The court sentenced them both to one year and eight months in jail.
Prosecutors argued that the pair had evaded taxes on income of 416 million euros each and 200 million euros through a Luxembourg-based company. The statute of limitations ran out on a charge of misrepresenting income.
The designers have denied the charges.
Two years ago, a judge threw out a tax evasion and fraud case against the pair, whose label Dolce&Gabbana is a Milan fashion mainstay. Italy’s high court later ruled the designers could be prosecuted for tax evasion, though not for fraud.