Dolce & Gabbana Sentenced To 20 Months In Jail For Tax Evasion

Domenico Dolce and Stefano Gabbana

Italian fashion duo evaded to pay a total of $543 million euros in taxes and were found guilty in two separate cases.

By H. Nelson Goodson

June 20, 2013

Milan, Italy - A Milan court sentenced both Domenico Dolce, 54, and Stefano Gabbana, 50, to 20 months in jail for tax evasion totaling $200 million euros ($268 million dollars). The court also fined them $500,000 euros ($670,000 dollars) and ordered them to pay it to the Italian tax agency.
Four other Dolce & Gabbana associates including Alfonso Dolce (Domenico's brother) and Luciano Patelli, a consultant are also facing prison terms.

Prosecutors say, Dolce and Cabbana, the fashion duo created a company outside Italy named Gado from their surnames in Luxembourg between 2004-05 for the purpose to avoid paying taxes. They failed to claim it as one of their business ventures and assets for tax purposes.
The defendant's attorneys say, that they will appeal their client's sentences. Their sentences were suspended until they exhaust their appeals, according to court records.

In March, they were also found guilty of evading to pay taxes and were ordered to pay $343.3 million euros ($439.70 million dollars) in restitution. They were facing five years in prison, but that case has been also appealed.

Both Dolce and Cabbana, founded their multi-million fashion designing company in 1985. Today, they have 250 shops and their products, clothing, footwear, handbags, sunglasses and watches are distributed in 40 countries. Dolce and Gabbana employs about 3,000 workers.