Domenico Dolce and Stefano Gabbana, known for their luxury brand Dolce & Gabbana, have recently had their hands full with trying to balance running their label with a major tax evasion scandal in Italy.
Last month, the designer duo was fined $440 million by Milan’s tax court for their alleged tax evasion crime. The designers, along with their accountant, are accused of omitted and unfaithful earnings declarations, specifically related to the 2004 sale of the Dolce & Gabbana and D&G brands to the designers’ Luxembourg-based holding company, Gado Srl. Italian officials believe that the designers made the sale to avoid higher taxes in Italy, with the designers denying all charges.
The fine may be the least of their worries, as the criminal trial they face has yet to be settled. According to WWD, in prosecutor Gaetano Ruta’s closing speech, he requested two and a half years jail time for both Dolce and Gabbana, three years for the designers’ accountant Luciano Patelli and two years for both Alfonso Dolce (Domenico’s brother), and financé, director Giuseppe Minoni.
Reports earlier in the trial indicated that the designers could face as much as five years of jail time. If the prosecutor gets his way, Dolce & Gabbana could be designing their next collection from prison. Stay tuned…
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