Dolce and Gabbana Guilty Of Tax Evasion

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dolce & gabbana

The two iconic Italian fashion designers, Domenico Dolce and Stefano Gabbana, were both found guilty this week of evading taxes on $1.3 billion in income. The case dates back to 2004 when the pair sold Dolce & Gabbana’s main two brands to a Luxembourg-based holding company. Prosecutors claimed that this was done to avoid paying taxes on the profit from the brands. It makes a lot of sense considering that corporate tax rates in Luxembourg are basically zero. Dolce and Gabbana have been sentenced pay a hefty fine and one year and eight months of jail time each, but this means essentially nothing in Italy. The two are allowed to appeal this verdict twice, which could take years. Even if they are forced to serve time, sentences that are less than two years are served under house arrest or community service.

Ultimately, this mostly ends up just being a nuisance for their lawyers. Neither man showed up in court and both maintain their innocence. So fear not, all you sexy celebs out there! No harm shall come to Dolce & Gabbana.

[Wall Street Journal]

[NBC News]

[Gawker]

[Image via Getty]

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