Dolce & Gabanna to Appeal Tax Verdict


The fashion masterminds behind Dolce & Gabanna, Domenico Dolce and Steffano Gabanna have been sentenced to 18-month jail time for alleged tax evasion from the year 2004.They have been accused of using Luxembourg holding company, to avoid paying up to 1billion euros in royalties. During the first trial, the pair was found guilty and sentenced a jail time of 20 months, along with a 10 million euro fine. Onlookers originally thought that they would be acquitted after their first appeal. However, the judge who reviewed the case just reduced the sentence by a mere 2 months. According to Italian law,the duo will not have to actually serve any prison time,considering their sentence is under the two-year minimum in Italy. Still denying the claims against them, the next step for the case is to head to Italy’s Supreme Court.

A lawyer for Dolce and Gabanna has said, “I am speechless. We are all shocked. The judgment is inexplicable and we will appeal.”
Dolce & Gabanna were not the only luxury designers accused of tax evasions in Italy. Previous accuse-es include: Prada and Armani. According to, fashion companies have fallen under intense scrutiny from the Italian government. This is partly because they are one of the only sectors that have done well during Italy’s largest recession.

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