In the past couple of months the Italian tax police have been really cracking down, and it seems as though the fashion industry keeps getting hit.
And just when we thought all the courtroom drama was over, allegations against the former Valentino chairman, Matteo Marzotto, emerged.
Marzotto, along with his sister and a few others have been indicted for evading taxes of more than €71 million (approximately $93 million), according to WWD.
The charges surround the May 2007 sale of Valentino Fashion Group to private equity fund Permira, for around $1 billion. Italian tax police allege that the transaction was made through a foreign company based in Luxembourg, International Capital Growth, which was created entirely for the sale of the Valentino brand in order to avoid high Italian taxes.
Along with members of the Marzotto family, the Italian government also indicted entrepreneur Massimo Caputi and ICG’s administrator and president of the board. Eight of the ICG partners have opted for a plea bargain, which converts a six-month sentence into a fine, but Matteo and a few others have opted to stand trial.
A few weeks ago designers Domenico Dolce and Stefano Gabbana were convicted of tax evasion and ordered to pay a penalty of 500,000 euros (about $670,000) to tax authorities and serve one year and eight months in jail.
So, do you think Matteo Mazotto will face the same harsh consequences as Dolce and Gabbana?
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