Dolce & Gabbana Owe the Italian Government HOW Much?

Dolce & Gabbana Owe the Italian Government HOW Much? (Getty Images)

Here's a little incentive not to lie to the IRS: Italy’s Tax Commission has fined Dolce & Gabbana 343.4 million euros, or $440.2 million at current exchange — plus interest! — for alleged tax evasion, WWD reports.

This is just the latest development in a long, messy legal battle. Back in 2004, Domenico Dolce and Stefano Gabbana sold their Dolce & Gabbana and D&G brands to the designers’ Luxembourg-based holding company, Gado Srl., and allegedly moved all of their wealth to Luxembourg, too, to avoid high Italian corporate tax rates.

The duo were charged in 2010, after the Italian government accused them of not reporting $1.1 billion in sales, but the case was dropped due to a lack of evidence. Then, in 2011, Italy's Supreme Court re-opened the case, and ruled that tax avoidance is a criminal offence — hence the $440 million fee.

Dolce & Gabbana have held tight to their claim that they're innocent, and they can still avoid the fine if they appeal and wait for a third degree sentence. But even if they do have to pay up — the guys are billionaires! So, basically, a few hundred million dollars is but a small dent in their zebra-upholstered furniture and car-sized chandelier budget.
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