by Christopher Freeburn | May 30, 2013 9:12 am
International fashion stars Domenico Dolce and Stefano Gabbana could soon trade the catwalks of Paris and New York for time in an Italian prison.
The duo behind Dolce & Gabbana, the trend-setting brand that has come to define Italian apparel, are facing charges tax evasion in Italy. Prosecutors are asking the court to impose a two-and-a-half-year prison sentence for both men, Time notes.
Italy has been pursuing tax evasion charges against the designers and their firm since 2010, but the trial only began this year. The charges relate to the 2004 sale of the company and the establishment of a holding company in Luxembourg owned by the designers. Italian prosecutors say that the arrangement is actually a scheme to avoid paying €420 million in corporate taxes.
In addition to the designers, other executives of the D&G holding company are also facing possible prison sentences in connection with the tax evasion charges.
If the prospect of prison isn’t bad enough, the Italian Tax Commission is separately demanding that Dolce & Gabbana pay €343 million in fines.
Last year, American rapper “Fat Joe” pleaded guilty to tax evasion in a New Jersey federal court and faced $700,000 in fines and up to two years in prison.
Source URL: http://investorplace.com/2013/05/why-fashion-icons-dolce-gabbana-are-facing-jail-time/
Short URL: http://investorplace.com/?p=354110
Copyright ©2013 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.