All that money had to end up someplace. But as far as the Italian government is concerned, it didn’t go to the right place.
Fashion icons Domenico Dolce and Stefano Gabbana have been convicted of evading over $1.3bn dollars in taxes by using a Luxembourg-based holding company called Gado (a clever mix of the first two letters of their last names—given that Dolce has always had the lead position in their branding, this seems like something of a coup for Gabbana).
They’ve been caught in the net for some time. The original charge dates from an investigation that began six years ago, when the Italian government began to crack down on tax evasion. The pair were originally cleared of charges in April 2011, but Italy’s highest court overturned that result and granted a new trial for prosecutors. Given that tax avoidance has become something of a hot-button topic in austerity-ridden Europe, this should make for some pretty rotten tomatoes at upcoming fashion shows.
The pair have been sentenced to one year and eight months, but the sentence has been suspended pending appeal, meaning they may never serve any actual jail time.
Which is a pity . . . I’m sure they could do wonders with an orange jumpsuit.