Some of our favorite handbag designers are in a spot of bother with the tax man. Domenico Dolce and Stefano Gabbana, of Dolce & Gabbana fame, have been indicted on tax evasion charges.
The fashionable pair allegedly moved $569 million a piece to a holding company in the tax haven of Luxembourg between 2004 and 2006. That’s a lot of It bags worth! It’s unsure at this time whether the label will pay a fine or attempt to weasel out of the charges altogether.
Personally I think they’ll pick the former option. I’m sure they don’t want the inevitable spotlight glare that would come from a lengthy legal trial, or the greater fine they could receive of $1 billion if they’re found guilty.
Then again, the Italian duo have denied any wrongdoing so perhaps they’ll fight this thing on principle.
A Milan-based source claims that “in many cases, this kind of accusation stems from the different interpretation of regulations. The state, which often doesn’t get to big-time tax evaders, tries to get to those who already pay their taxes, and ends up collecting one from the original 100 demanded.“
Do you think Dolce & Gabbana are guilty? And what do you think these charges will mean for the pair’s fashion house?
[Source: NY Mag]
[Image Source: 663 Highland/Wikipedia Commons]
