I wonder, will there be designer jumpsuits for Dolce & Gabbana designers; Domenico Dolce and Stefano Gabbana. A while ago I wrote about the possibility of the duo going to jail. However, today it became reality. They were each given a reduced, suspended sentence of 18 months in jail on Wednesday for a conviction on charges of hiding hundreds of millions of euros from Italian tax authorities.
Italy’s appeals court upheld a verdict issued last June against the pair, who are as famous as the stars they dress, on charges of using Luxembourg holding company Gado to avoid paying taxes on royalties of about 1 billion euros ($1.38 billion). The sentence was reduced from 20 months because the statute of limitations applied to certain facts in the case. A lawyer for Dolce and Gabbana, who have always denied any wrongdoing, said they would appeal the decision. “I am speechless. We are all shocked. The judgment is inexplicable and we will appeal,” Massimo Dinoia said after the judgment. A Milan prosecutor had asked the court in March to clear the pair, who – in a protest last year at being “pilloried” – closed the Milan shops where they sell clothes and accessories inspired by Dolce’s native Sicily.
These are not the only designers that have fallen victim to tax authorities and mismanaging euros ($1 = 0.7237 Euros). Giorgio Armani paid 270 million euros to tax authorities in early April to settle a dispute over payments from the group’s subsidiaries abroad. Prada Holding, which controls Prada, paid a reported 400-420 million euros to settle taxes in Italy after completing a process of voluntary disclosure in December.