Dolce & Gabbana Tax Evasion Case Reopened | Designers to Stand Trial After Appeal

1 min read

Dolce & Gabbana Store

Dolce & Gabbana Store

Domenico Dolce and Stefano Gabbana are again being investigated for tax evasion after the decision to drop the case was overturned.

You might remember that the designing duo was accused of failing to declare more than $1.1 billion in sales. In April the charges were dropped due to lack of evidence, but recently that decision was overturned by a higher Italian court.

We won’t know until January why the case has been overturned, but a legal expert told Women’s Wear Daily it’s likely “the Supreme Court believes the judge’s decision to clear the designers was tainted by a legal flaw, a defective motivation or an error in the application of the law.”

On the other hand, if you believe Stefano Gabbana’s Twitter comments, it’s because the Italian government is a bunch of “Thieves!!! They don’t know what to do to get money out of us.” Perhaps it’d be smart for him to steer clear of social networking until this case is put to bed.

Dolce and Gabbana allegedly owe around $562 million in back taxes after the sale of Dolce & Gabbana and D&G to the holding company, Gado Srl. The Italian tax police believe this company is simply a legal entity established to avoid corporate tax rates.

If the new judge decides to proceed with the case Dolce and Gabbana may pay a fine to avoid a lengthy court battle and criminal record, undergo a full trial, or take part in a smaller trial using fewer documents and witnesses for a discounted penalty. Either way this holiday season is likely to be a stressful one for Dolce and Gabbana as they await their fates.

[Image Source: Lammery/Wikipedia Commons]