Dolce and Gabbana face verdict on alleged tax evasion
MILAN (REUTERS) - An Italian court is expected to rule on Wednesday on whether legendary fashion duo Domenico Dolce and Stefano Gabbana should be sent to prison for allegedly hiding hundreds of millions of euros from the tax authorities.
The case, one of the few prominent tax disputes to go to court in Italy, dates back to 2004, when the pair sold their brand to Luxembourg-based holding company Gado to allegedly avoid declaring taxes on royalties of about 1 billion euros (S$1.7 billion).
Cash-strapped Italy has recently stepped up action on tax evasion, something that was also featuring high at this week's Group of Eight meeting.
The Italian tax agency has carried out highly publicised tax raids at chic tourist locations while increasing scrutiny on corporate structures.