Category Archives: Fashion Law Cases

Dolce and Gabbana Tax Evasion

Famous court cases…. There are many court cases that spread widely into the public eye. O.J. Simpson, Jodi Arias, and George Zimmerman just to name a few.

Court cases can easily blow up the world of multi-media. A current court case, that has recently been given a sentence, is the Dolce and Gabbana case.

Domenico Dolce on the right and Stefano Gabbana on the left actress Monica Bellucci pose for photographers during the opening of a new Dolce&Gabbana shop in Moscow last month. Reuters

For those who don’t know, Domenico Dolce and Stefano Gabbana, are two famous Italian fashion designers who have been designing for almost 30 years. Their designs have been featured in top fashion magazines including Vogue, Italian Vogue, Marie Claire, Elle, and more.

In 2004 and 2005, the duo Italian fashion designers failed to pay $55 million(US Dollars) in taxes. They were originally fined a charge of 343.3 million euros ($439.70 million U.S.) and eventually sentenced to one year and six months time in jail.

About ten years ago, the fashion designers had sold their company to a Luxembourg-based holding company called Gado Srl, which is a popular spot for holding companies due to it’s banking industry and tax friendly status.

For this reason, the Italian tax authorities believed Dolce and Gabbana had undergone the sale to initially avoid paying taxes on the transaction. This began a long and wide spread investigation of the designers financial status.

The designers. of course, pledged innocent and deny any of the tax evasion charges.

The fashion designers are represented and loved by celebrities including Naomi Campbell, Katy Perry, Beyonce, and Madonna. Their fans and celeb support has been constant throughout the years in supporting the group and the company.

In This Photo: Naomi Campbell, Eva Herzigova, Claudia Schiffer, Domenico Dolce, Stefano Gabbana Celebrities attend the Dolce & Gabbana Perfumes Collection Launch at La Rinascente Piazza Duomo during Milan Fashion Week Spring/Summer 2010.

In fact, the fashion designers turned their tax evasion case into inspiration for their designs and showcased them in Milan fashion week, Sept. 23rd 2014.

The public support for the group has been very positive despite the sentencing of both the designers. Websites, videos and pictures are everywhere on the web following the case. You can find more information on websites such as, Wall Street Journal, and The Huffington Post.

Each website has a good detailing and understanding of the court case. Although, I have found the exact number the designers have been charged for varies slightly between each site.

Most of the sites that have written about the case include an outline of how the case began and what verdict has been given. I would say, to improve the sites, an actual outline of the dates in which the statements have been made would be nice.

Overall, most websites are laid out the same way, giving a detailed description of the case-how it started and where it’s at now. Most of the information I found has been accurate and constant throughout the websites, except the amount of money they have been charged.

Dolce and Gabbana Designs

In the end, Dolce and Gabbana have been sentenced to eighteen months in jail, but are likely to appeal the verdict continuing the case further still.