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19-06-2013
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^Great post, YoninahAliza. I agree entirely. It's ridiculous how many famous and wealthy people do this. And they will end up spending so much money for a good lawyer in those cases, so what's the point, the risk of being caught is huge. Also, "hundreds of millions of euros", that is insaaaane, did they not pay any taxes at all during all these years?? I can understand wealthy people moving to states where taxes are lower and all that, but living in your home country and profiting from its infrastructure while not contributing to it like everyone else, that's idiotic. This whole things makes them even less likable

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19-06-2013
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This isn't just a couple millions in back taxes, this is €416 million(!), roughly $540 million. They didn't just forget to pay over the years, they took strategic steps to AVOID paying - selling the company to Luxembourg-based holding company Gado Srl. to circumference Italy's corporate taxes. This was premeditated and calculated. IF they serve the 20 months they got off too lightly.

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19-06-2013
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Quote:
Originally Posted by VogueDisciple93 View Post
This isn't just a couple millions in back taxes, this is €416 million(!), roughly $540 million. They didn't just forget to pay over the years, they took strategic steps to AVOID paying - selling the company to Luxembourg-based holding company Gado Srl. to circumference Italy's corporate taxes. This was premeditated and calculated. IF they serve the 20 months they got off too lightly.
Very true. Tax evasion is tax evasion and it's not justifiable because of who the person avoiding paying the tax is. Hopefully this sends a message out to other public figures and businesses who have been doing similar that there are consequences.

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19-06-2013
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Should I expect Naomi opening the show in an embellished orange jumpsuit, strutting that damn runway for Spring/Summer 2016?

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19-06-2013
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Quote:
Italian designers Dolce and Gabbana convicted of tax evasion

By Manuela D'Alessandro
MILAN | Wed Jun 19, 2013 5:39pm EDT


(Reuters) - Fashion designers Domenico Dolce and Stefano Gabbana were handed a 20-month suspended prison sentence and a heavy fine on Wednesday for hiding hundreds of millions of euros from the Italian tax authorities.

The design duo, who are nearly as famous as the stars they dress, were not present in court in Milan and will lodge an appeal against their conviction on charges that they have always denied.

"We will read the reasons for the verdict, and we will appeal," Massimo Dinoia, one of the pair's defense lawyers, said after the hearing.

Public prosecutor Gaetano Ruta had asked for a two-and-a-half year jail term. However, the two designers will have to pay 500,000 euros as a first instalment of a fine that could reach 10 million euros ($13.4 million).

The judge acquitted the pair of charges that they had filed inaccurate tax returns.

The success of Dolce and Gabbana's sexy corset dresses and sharply tailored suits favored by celebrities such as Kylie Minogue, Kate Moss and Bryan Ferry have earned them a glamorous lifestyle. In 2009, they hosted popstar Madonna, a friend and client, for her birthday at their villa perched above the chic Mediterranean resort of Portofino.

The case involves an investigation that began in 2008, when authorities tried to crack down on tax evasion as the financial crisis began to bite. But the Dolce and Gabbana inquiry is one of the few high-profile cases to come to trial so far.

The judge ruled that the pair sold their brand to Luxembourg-based holding company Gado in 2004 to avoid declaring taxes on royalties of about 1 billion euros ($1.3 billion).

Public prosecutor Laura Pedio told the court in her closing arguments that the designers were "well aware that they would reap a tax advantage from this transaction."

Gado is nothing but a shell company that took no administrative or financial decisions, said Pedio. "Gado is a radio relay station," she said. "The orders originated in Milan, and bounced from Luxembourg back to the Milan offices where the decisions regarding the brands were made."

Dolce and Gabbana's three lawyers said in a statement they were "frankly stunned" by the verdict and were "certain that that it will be overturned on appeal."

The designers still risk a possible tax bill of more than 400 million euros as a result of the case, their lawyers said, which could impact their fashion house.

"We are afraid to even imagine what the social and economic consequences of such a move would be," said their lawyers.

The pair's flamboyant designs are inspired by the island of Sicily, where Dolce was born in 1958. They showed their first collection in 1985 in Milan, the home city of Gabbana who is now 50. The brand took hold internationally in the 1990s and global revenues hit just under 1.5 billion euros in 2011.

The designers have always said they are innocent. "Everyone knows that we haven't done anything," Gabbana tweeted in June 2012 after the trial was ordered.

Gabbana's immediate reaction on Wednesday was to tweet a photograph of the branch of a citrus tree, a symbol of Sicily which is the duo's signature, just seconds after the verdict was announced. A strand #freedolceandgabbana also appeared on Twitter. ($1 = 0.7467 euros)
reuters

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24-06-2013
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Quote:
Originally Posted by KateTheGreatest View Post
Holy smoke I always thought powerful people would only get probation ...
I wonder what this means for the brand.
We're talking about HUNDREDS of millions of euros here! I'm surprised they didn't get sentenced to more jail time.

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25-06-2013
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Yeah I know that but you know how celebrities can do whatever they please and at worst, they get a slap on the wrist.

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25-06-2013
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I feel like this is karma for the atrocities presented in their recent collections....can't believe those with the means to pay, want to pay nothing at all. It's just gross...

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25-06-2013
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I couldn't care less about them. This reminded me of that Serbian singer Ceca who did something similar - media and fans declared her a victim for being sentenced. I believe this will be the same. Just like Galliano. Everybody should be punished, but I guess that's opening a whole new discussion.

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25-06-2013
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They won't serve jail time, and they'll be forced to back pay the taxes. So in essence, no real punishment at all since they would've paid the tax if they had in the first place.

Quote:
But even if their lawyers were to let the decision stand (which they won't without a fight — they've already vowed to appeal it), the designers probably won't actually go to prison at all, and neither will any of their four colleagues also found guilty. In Italy, most criminals don't have to serve prison terms of under two years; the ruling appears to function more like a suspended sentence, meaning they'll only go to jail if they run afoul of the law again.
http://nymag.com/thecut/2013/06/dolc...o-to-jail.html

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20-07-2013
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Dolce & Gabbana close Milan boutiques for three days as 'symbol of disdain'
Quote:
Designers Domenico Dolce and Stefano Gabbana, who were found guilty of tax evasion and sentenced to prison last month, are temporarily closing nine stores in the Italian capital after being 'pilloried'.
'We are no longer willing to tolerate unfair accusations on behalf of the Italian Guardia di Finanza (Italian Tax Police) and the Agenzia delle Entrate (Internal Revenue Service), attacks from the Public Prosecutor and the media assault we have been subjected to. Not only for ourselves but, above all, for the people who work with us.' Thus reads a letter released today by Domenico Dolce and Stefano Gabbana.
Last month the design duo were found guilty of evading around €400 million (£342 million) on a €1 billion business deal through the sale of their D&G and Dolce & Gabbana brands to a holding company which they set up in Luxembourg in 2004. Prosecutors had called for the duo to be sentenced to two-and-a-half years in jail. The judge in the case also ordered the designers to pay €500,000 each in damages.

Reuters report how the windows of the brand's Milan boutiques carry the message 'Closed for Indignation' as well as an article from a newspaper in which Councillor Franco D'Alfonso suggests that the label shouldn't be allowed to show its next collection in the city's open spaces. "We don't need to be represented by tax evaders," D'Alfonso explained. He has since apologied for his remarks, saying they were "not given in an interview, but extrapolated from an informal conversation" and "certainly did not express the opinion of the administration."
Today's letter continues: 'Finally, indignant with how we are being treated by the city of Milan, we have decided to close all our shops in the city (a total of nine retail stores) for the next three days starting today. We were born in Milan and have always been very grateful to this city. However, it must also be said that in the last 30 years we have given a great deal to this city: prestige and international visibility, jobs and economic development.'
Attached to the letter is a table showing the 'important contributors' to the city of Milan according to 2005 incomes, with Dolce and Gabbana in fourth and fifth place respectively.

The designers have strenuously denied any wrongdoing, remaining defiant despite their prison sentences, and are planning to appeal.
In the letter the designers explain: 'Just considering our stores in Milan, we provide jobs for over 250 people who, in the following days, will be properly remunerated even if our stores will stay closed.

'Despite our passion and a sense of responsibility which push us to continue working with our usual dedication and drive, we are tired of being subjected to continuous slander and insults, which are detrimental to the serenity of our work place and distracting us from our work as designers.
'We are very fortunate to work with people who are gifted with rare excellence, both from a technical-professional point of view and from a personal point of view; they believe in us and this situation is taking away their motivation.

Dolce, 54, and Gabbana, 50, concluded the letter by writing: 'The closing of our shops in Milan is a symbol of our disdain.'

fashion.telegraph.co.uk

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20-07-2013
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As long as the workers are still getting paid they can stay closed for as long as they want. Wouldn't mind of they skipped a season either...

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20-07-2013
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Quote:
Originally Posted by Marc10 View Post
They should be in jail for making the same damn collection since 2009 tbh.
Hahaha!

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20-07-2013
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Quote:
Originally Posted by YoninahAliza View Post
I feel the same way EvaH, I've never understood why people avoid paying taxes. Taxes are a natural part of being a citizen in Italy (in the US, etc... pretty much anywhere), it is to be expected. It's not like they get a bill at the end of the year and go, "Whats this??? We weren't told about this!" Everyone pays taxes and those taxes go to supporting the governments infrastructure. Do rich people not have good accountants? Because if middle class and lower income people can pay their taxes then surely the wealthy can too.

Perhaps this is harsh but I do not feel much pity for these two, clearly they broke the law, and when this happens repercussions ought to occur. Honestly, it bugs me so much when wealthy people get off scot free in tax situations (or in other events where the law was broken), they are no more special then the rest of us, therefore they should be given the same punishment. Of course this could be bad for the company but perhaps Dolce & Gabbana should have thought about that before trying to avoid paying taxes.
Well said!

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20-07-2013
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Quote:
Originally Posted by Nymphaea View Post
Dolce & Gabbana close Milan boutiques for three days as 'symbol of disdain'


fashion.telegraph.co.uk
These two just don't get it. Stop faking the funk, you evaded taxes, pay up and move it along. Can't believe they have the audacity to throw out the victim card now. They should be thanking their lucky stars they're not sitting in jail.

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Wouldn't mind of they skipped a season either...
Totally.

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