Dolce and Gabbana Indicted for Tax Evasion
Will prison stripes be the hot new look for Domenico Dolce and Stefano Gabbana? Maybe, maybe not—but they will most likely have a lot less green in their collection soon.
The famed clothing designers have been indicted for tax evasion, and if found guilty, it will be no slap on the wrist—each designer is accused of owing about $569 million, making for a combined total of more than $1 billion.
Authorities accuse the designers of setting up a holdings company in Luxembourg in an effort to avoid high Italian taxes. In the past, the pair have lambasted Italy's tax structure, noting in a 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."
The pair have the option of settling out of court and paying a fine; failing that, the case will go to trial in Milan, Italy, where the clothing industry giants face a $1 billion smackdown and a possible three years in jail.