Thursday, June 20, 2013

Dolce and Gabbana Sentenced to Jail for Tax Evasion

Yes, you have read correctly. Ok we were first surprised by the news too; but then again, tax evasion seems to be a pretty common thing for many celebrities. Lauryn Hill last month, and this month Domenico Dolce and Stefano Gabanna, better known as the fashion duo behind high fashion line D&G.
According to British Broadcasting Company (BBC), the two have been sentenced to jail in Italy for one year and eight months for hiding millions of euros from Italian tax authorities.

But does the time fit the crime? BBC reports that investigations began six years ago. Later on in 2004, the designers moved their brand to Luxembourg under the name Gado. The Judge says that the move was to avoid declaring taxes on royalties around 1 billion euros ($1.3 bn). Lastly, D&G sold their business for well below actual market value.

The two men were not at trial, but subsequentially denied the charges and appealed- though no public statements have been given.

Fashion Legallaire's Thoughts: with a fashion institution this big, D&G can afford the attorneys needed for this law suit. Also, tax evasion is a civil crime so no criminal attorneys needed. However, since their attorneys are considered fashion lawyers, this is a very good example of a fashion lawyer putting on multiple hats as counsel and advocating as necessary. Yes, the primary job may be fashion, but when other issues arise, it is up to the fashion lawyer to give the best counsel.

No comments:

Post a Comment