Well known Italian fashion designers Domenico Dolce and Stefano Gabbana have been sentenced to jail for one year and eight months respectively for tax evasion on the decision of the Court of Milan.
A few years ago, the tax authorities were focused on the “Gado” sister brand, which, in accordance to the registration, the company was owned by DOLCE and GABBANA Luxemburg branch.
As a result the fashion designers sold the business for well below actual market value, which could provide opportunity to extract around 1 billion Euros from the Apennines for them two.
The designers had moved their brand to a Luxembourg-based holding company Gado in 2004-2005, and then again relocate their actives to Italy in 2007, ITAR TASS reports.
The prosecution demanded 2.y5 year’s jail for the fashion designers. However the defense insists that the cost of the brand was real, on the assumption of the fact that it was a family transaction, which provided opportunity to set such value. According to them around 45 % of the cost was paid as taxes.
The Court decided to impose a fine of 500 thousand Euros as repairation of losses caused to the tax services. The decision may be appealed.

Iravaban.net