Daily Front Row

2010 November 22

Dolce & Gabbana Allegedly Indicted for Tax Evasion

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Stefano Gabbana & Domenico Dolce
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(MILAN) The Italian authorities are still utterly focused on Dolce & Gabbana. According to sources, Stefano Gabbana and Domenico Dolce have been indicted for alleged tax evasion, meaning a court trial. This is only the latest development in an extensive case that began in 2008. They are charged with tax evasion and abuse of rights stemming from the sale of Dolce & Gabbana and D&G  to the designers’ Luxembourg-based holding company, Gado Srl, in 2004. The designers have consistently denied any wrongdoing, but if found guilty, Dolce and Gabbana could be personally liable for over $1 billion in fines and unpaid taxes. The evasion of national income tax charge carries a prison sentence of up to three years or a fine up to 1 million euros.

According to reporters, a judge will soon evaluate evidence from Milan-based prosecutor Laura Pedio; he will have the option of dismissing the case if the evidence is not deemed sufficient. If the case does proceed, Dolce and Gabbana’s lawyers may favor negotiation (to allow the designers' criminal record to remain clear) and settlement rather a pesky, pricey trial. Dolce and Gabbana, however, may want to prove their innocence in court, which may lead them to the third option: a shorter trial based on fewer documents and witnesses, which culminates in a penalty discounted by one third. A spokesperson did not respond to requests for comment, but recent posts on Stefano Gabbana's Twitter feed include, " @MenStyleit Buongiorno!!!!", @birdypreston I love India!!!!! It's a fantastic place!!!! :-), and  @Psikiatria80 Madoooooooonna che ricordi!!!!!! :-)))).
ASHLEY BAKER