Dolce & Gabbana Found Guilty of Tax Evasion

Domenico Dolce and Stefano Gabbana (the men behind Dolce & Gabbana) have been found guilty of tax evasion. The verdict was announced yesterday. 

This is actually the second time the pair have been found guilty for the same crime — last June they were given a guilty verdict, which they quickly appealed. However, their three-judge panel found them guilty once again and sentenced each designer to 18 months in prison. They also must pay a fine of 500,000 euros (more than $760,000 CAD). 

Apparently, the tax evasion took place when they sold both their Dolce & Gabbana and D&G brands to holding company Gado Srl in 2004, when they failed to pay 40 million euros (about $60.9 million CAD) in taxes. However, the pair have both continued to deny the allegations. 

"Those issues that concern the image of the fashion house an the creation of products, while all that pertains to the commercial phase, such as the organization and the administration of the company structures, concern other offices and individuals," said their legal representative Massino Dinoia. 

Dolce and Gabbana had a glimmer of hope back in March when the state general prosecutor, Gaetana Santamaria, requested that they were acquitted, saying "the case is groundless." 

According the Forbes, the duo are expected to make yet another appeal to the supreme court. 

Tags: designers, Dolce & Gabbana, domenico dolce, Fashion, stefano gabbana

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