Dolce & Gabbana Facing Jail Over Tax Evasion Charges

The designers appeared in court yesterday over alleged tax evasion charges – read all the latest details here.

Dolce and Gabbana’s designers appeared in court yesterday, facing charges of alleged tax evasion.

The fashion house heads, Domenico Dolce and Stefano Gabbana are accused of not paying royalties which total a whopping £860 million.

The court case has been the talk of style press in recent weeks, but it’s yesterday’s new developments which have really shocked the fashion industry. The prosecutor in the case has requested that the pair be sentenced to two-and-half years in prison, according to WWD.

Gateano Ruta also suggested in his closing speech that the designer’s board member, their accountant, Domenico’s brother and the company’s finance director should all face prison time for their parts in the tax scandal.

The case dates back to 2004 when the Dolce and Gabbana and D&G brands were sold to Gado Srl, a holding company set up by the designers. Italian prosecutors claim that the company was set up to enable the pair to avoid paying taxes.

In April, they were asked to pay a £293 million fine to the Italian Tax Commission, but it’s thought that they may appeal against the order.

Corporate taxes in Italy are some of the highest in the world.

We’ll bring you more news on the case as it unfolds.

CHECK OUT DOLCE & GABBANA’S SPRING/SUMMER 2012 CAMPAIGN

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