D&G face tax evasion charges
The latest news on Stefano Gabbana and Domenico Dolce’s alleged income tax evasion, a case that started in 2008, is that the two fashion designers have been indicted by authorities in Italy and may be confronting a court trial.
If ruled guilty, the duo could be looking at $1 billion to cover the unpaid taxes and fines. Dolce and Gabbana both denied any unlawful activity.
The case is based on the sale of Dolce & Gabbana and their brands to the two’s holding company Gado Srl, a deal which occurred in 2004. The pair claims it was a “mistaken interpretation” on the part of authorities and that they had declared and paid everything they owed on the matter.
According to WWD, the next step is a preliminary hearing, in which a judge will rule whether or not there is sufficient evidence to substantiate further proceedings. Should the judge rule to carry on, Dolce and Gabbana will have a few options: negotiation and a fine, circumventing a trial; a normal trial; or a shorter, more rapid trial, which means a penalty of one third less.
After receiving the charges, the two designers declared the following in a personal 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.”
If convicted, Dolce and Gabbana could be facing three years in prison or a fine up to 1 million euros (around $1.3 million).