Dolce and Gabbana have been fined and sentenced to jail for dodging taxes


Being rich and successful can not only get you fame and acclamation, but can also get you on the wrong side of the judiciary, unless you have a clean paper. While on one-end we have environment conscious and noteworthy brands, the other side we have tax evaders. News has it, that Italian fashion designers Domenico Dolce and Stefano Gabbana have been sentenced to jail in Italy for one year and eight months for tax evasion. Although, initially charges had been dropped at a previous trial in April 2011, Italy’s highest court wasn’t satisfied enough, overturning the ruling, sentencing Dolce and Gabbana guilty, but suspending their imprisonment.

The duo have been accused for hiding millions of euros from Italian tax authorities and have been sentenced a penalty of €500,000 (about $660,000) to Italy’s National Tax agency. However so, the designers, who weren’t present at the trial, have denied all charges, and have appealed. They haven’t commented on their sentences, which have been suspended, pending their appeal.

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Dolce and Gabbana, who have a fan base, including famous celebs like Madonna, Kate Moss, and Kylie Minogue, are being accused of having avoided declaring taxes on royalties of around 1 billion euros ($1.3 billion) and engaging in the ‘act’ of selling their brand to Luxembourg-based holding company Gado (a play on their two surnames) in 2004.

The investigation by the Italian authorities began around six years ago as part of a government plan to crack down on tax avoidance.

[Via – BBC]