Tax Evasion
Tax Evasion In June 2013 the Italian design duo Domenico Dolce and Stefano Gabbana were convicted by a lower court for failing to file tax declarations for the Luxembourg company Gado which was a subsidiary for Dolce and Gabbana. Prosecutors alleged Gado was set up to evade paying taxes in Italy. The case refers to the 2004 sale of its signature and D&G lines. The two denied charges and they breifly shut their Italian stores in protest. In April 2014 they were sentenced with a 20 month suspended jail sentence. The pair spent nearly 4 years trying to clear their names. Dolce's lawyer, Massimo Dinoia told 'WWD' that the latest ruling meant the case "is definitely closed with an unquestionable verdict that does not admit uncertainties: there is no case to answer. This case was long and draining for both the designers and the company, the focus was changed to being on the case rather than on the designs and progress of the company. This could have affected the sa...