Designer Dish. Dolce and Gabbana May be in Big Trouble for Tax Evasion

March 24, 2011 • Fashion

Dolce and Gabbana
Domenico Dolce and Stefano Gabbana

First the John Galliano scandal and now this. Last year we reported when Domenico Dolce and Stefano Gabbana were indicted for tax evasion on more that $1 billion in income, after an investigation had been underway since 2008. Now it seems the designers are in even hotter water as more incriminating evidence has been revealed. The New York Times has reported that while tax evasion cases are actually common within the fashion industry, (especially in Italy where The Times notes some people refer to it as "a national sport"), due to the disorganization of designers and the overall monotony of paperwork, the Dolce & Gabbana case is different.

It seems that the designer have gone to great lengths to purposefully and intentionally evade the Italian tax system, perhaps even to the extent of setting up a "dummy label" in Luxembourg where the taxes are considerably lower, and then not reporting the income from that label at all. While this has yet to be proven, the designers stand to be accused of (very obvious) fraud. They may stand trial for these new criminal charges and if convicted, could face a maximum sentence of five to seven years in prison. Tomorrow may be the day that decides Dolce & Gabbana's fate since authorities will come to a conclusion then whether or not a trial is needed. Sheesh, this is not been a good year so far for European designers.

-Alia Rajput

Article Source: The New York Times, NY Mag

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2 Responses to Designer Dish. Dolce and Gabbana May be in Big Trouble for Tax Evasion

  1. Maria says:

    Dolce & Gabbana must pay their due taxes. That is their responsibilities to pay them on time. If they could not pay taxes than that issues might effect their repute in industry… 🙁

  2. This is most unfortunate to hear about. It’s sad when things such as this tarnish the name of the industry.

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