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Dolce & Gabbana Indicted On Tax Evasion Charges, Could Pay $1 Billion

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Domenico Dolce and Stefano Gabbana have been indicted for evading taxes, WWD reports, with each designer allegedly owing 416 million euros, or $569 million.

The pair will either settle out of court and have to pay a fine or the case will go to trial in Milan and they'll risk owing up to $1 billion and could even spend three years in jail.

So what exactly are they on trial for? Vogue UK breaks it down:

The designers...were accused of setting up a holdings company in Luxembourg in order to evade high Italian taxes.

[...]

"It's a paradox! Since when does one have to pay taxes on money one never actually collected," the designers said in a personal statement in 2009. "It's an absurd demand based on a completely abstract calculation. This higher taxable sum is a virtual figure we have never received, the result of a theoretical accounting exercise."

Milan prosecutor Laura Pedio told WWD that she didn't know how long it would take to set a preliminary hearing date.

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