Dolce & Gabbana convicted of tax evasion, but won't serve time

Why worry about the courts when you practically own them?

Getty Images

Why worry about the courts when you practically own them?

20

June

Don't expect omnipresent designers Domenico Dolce and Stefano Gabbana to serve any jail time after their Wednesday conviction in Italy for tax evasion. They have places to be, after all.

The designer duo was convicted for selling their D&G and Dolce & Gabbana brands to Luxembourg-based holding company Gado way back in 2004 to keep from having to pay taxes on about $1.3 billion in royalties, or about $40 million, the New York Post reports. The pair denied the charges and weren't even in Milan to acknowledge the ruling, but were sentenced to 20 months in prison and $670,000 each in restitution.

Interestingly, Italian law states that people with prison sentences of less than two years don't actually have to go to prison, the Huffington Post says, so it doesn't look like their fashion show schedules will be interrupted at all.

The judge suspended the sentence and acquitted them of another charge of misrepresenting some $560 million in income, which had apparently passed the statute of limitations anyway. Three others involved in the case also were given suspended sentences. The moral to the story: If you're going to avoid paying taxes, do it in Italy, preferably for one of their big fashion houses.

 




[Last modified: Thursday, June 20, 2013 4:28pm]

Join the discussion: Click to view comments, add yours

Loading...