Italian fashion designers Domenico Dolce and Stefano Gabbana have been sentenced to jail in Italy for one year and eight months for tax evasion. They were accused of hiding millions of euros from Italian tax authorities.
‘Deny the charges’
The pair, whose customers have included Madonna, Kate Moss and Kylie Minogue, were not at the trial, deny the charges and have appealed.
‘Royalties of around 1 billion euros’
The investigation by the Italian authorities began around six years ago as part of a government plan to crack down on tax avoidance. At the hearing on Wednesday, the judge ruled that the designers moved their brand to a Luxembourg-based holding company Gado – an anagram of their two surnames – in 2004. He said they had done this to avoid declaring taxes on royalties of around 1 billion euros (£833m; $1.3bn).
Prosecutors alleged they sold the business for well below actual market value.
Do you think Domenico Dolce and Stefano Gabbana are actually guilty of this tax evasion charge? How will this affect their fashion business? Feel free to share your thoughts and opinions regarding this latest issue. Let your voice be heard via the comment box below!
Source: BBC News
Image: Financial Post