image: fasshadix
Designers Domenico Dolce and Stefano Gabbana were just indicted for tax evasion this week. They each allegedly owe $569 million, making the grand total over $1 billion! Yikes! Most likely the duo will either settle out of court and have to pay a fine or go to trial in Milan. If they choose the latter, they risk owing up to $1 billion and possibly spending 3 years in jail.
Domenico & Stefano were accused of setting up a holdings company in Luxembourg in order to avoid having to pay taxes in Italy, which are high. Here is what the designers have to say:
“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.”
What do you think?
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