Dolce and Gabanna sentenced to nearly 2 years jail for tax evasion

[educo]

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.

 

[KateTheGreatest]

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

 

[ad31214]

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...

 

[Srdjan]

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.

 

[Littleathquakes]

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.

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/dolce-gabbana-wont-actually-go-to-jail.html

 

[Nymphaea]

Dolce & Gabbana close Milan boutiques for three days as 'symbol of disdain'

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

 

[VogueDisciple93]

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...

 

[vanezinha]

They should be in jail for making the same damn collection since 2009 tbh.

Hahaha!

 

[Not Plain Jane]

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!

 

[Littleathquakes]

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.

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

Totally.

 

[YoninahAliza]

^Agree with you about the fact that they apparently have the audacity to try and play 'victim.' Honestly, I think the decision close up shop sort of looks like a temper tantrum, a bit of childish behavior if you will. I can only see these actions hurting the company, not the city of Milan anyways.

 

[StoneSkipper]

So, they're actually pissed off because the law was actually applied to them, and they should be exempted from the legal consequences because they 'gave a great deal to the city of Milan'? Give me a break. I believe I lost what little respect I had for them.

 

[Nymphaea]

Dolce & Gabbana claim they will go out of business if forced to pay tax evasion fine

Designers Domenico Dolce and Stefano Gabbana have said they are 'being crucified like thieves' and will go out of business if they are forced to pay a £300 million fine for tax evasion.
The duo recently lost a lengthy court case in which they were accused of evading more than €400 million in taxes after selling their brands to a holding company called Gado, which they established in Luxuembourg in 2004, enabling them to avoid a higher tax rate.
They were given 20 month jail terms and have been ordered to pay 343.4 million euros plus interest but are appealing the sentence.
"If we deserved the sentence, there would be nothing to say," Gabbana said on Wednesday. "But we do not deserve it, and so unfortunately we would have to close."
His fashion partner Dolce added: "We will close. What do you want us to do? We will close. We will not be able to deal with it. (It's) Impossible."
Following the sentence, Milan city councillor Franco D'Alfonso said the city should not give any public space to the designers, saying: "We do not need tax evaders to promote us". The duo subsequently closed their Milan stores, bars and restaurants for three days in protest .
They say they now want to put the episode behind them and are happy to meet with Giuliano Pisapia, the mayor of Milan, who accused them of overreacting .
"We are not going to give in to being crucified like thieves, because we are not," said Gabbana. "How could we accept being branded tax evaders?
"We are good people, we live in Italy we pay taxes in Italy, we don't pretend to live abroad."

fashion.telegraph.co.uk

The soap opera continues!

 

[TREVOFASHIONISTO]

^i think thats very dramatic. You just dont get accused of that unless youre guilty

 

[LabelWhore4]

Dolce & Gabbana claim they will go out of business if forced to pay tax evasion fine

Good! At this point I'd welcome them closing the business to preserve whats left of their reputation. They should just stick to makeup and fragrances for the time being.

My sympathy lies with the workers.

 

[lucy92]

they are a private company so we are not sure of their finances.

however the nypost reported this week that they were shopping for a $60 million apartment in New York's Mark Hotel?

so maybe they arent so broke.

 

[Littleathquakes]

hahaha they're "millionaire broke"

 

[YoninahAliza]

I totally feel for the garment workers who work at Dolce & Gabanna, it must be a very stressful time for them. I am sure they are worrying about the company, their jobs, and reputations. Honestly, if it weren't for all the people employed by the company then I'd say, "good let them go out of business," but since I imagine their are so many workers and artisans who would lose their jobs, I can not in good conscious wish that. But what I do know is that whatever the consequences are, the head designers will probably be fine. Maybe they will go to jail, maybe they won't. But as the fashion industry has been known to do, they may fall and then rise again. We've seen it time and time again. There are of course, some who just fall, but in recent years the industry has shown that no matter what you say or do, you can rise again. Which, to be honest, is the side of fashion I don't particularly like. And reading the articles on this situation just further highlights how unpleasant this side to the industry is.

 

[lucy92]

update from wwd:

In recent years, Italian tax authorities have targeted numerous prominent fashion figures ranging from Giorgio Armani to Garavani and Giammetti to, most recently, the Bulgaris. Almost all the cases were dismissed, although Dolce and Gabbana, the first Italian designers to actually be tried in court for tax evasion, were found guilty in June, yet acquitted on the second count they were originally charged with, which regarded the valuation of the company and the tax rate paid. In June, Judge Antonella Brambilla sentenced Dolce and Gabbana to one year and eight months in jail, plus legal expenses. The designers have denied the charges and are appealing the verdict.

Hard feelings remain. On Friday, Dolce and Gabbana kept the doors of their Milanese stores closed as a sign of protest following the publication of a story on Thursday in Italy’s daily Il Giornale — a protest expected to continue until Monday. In the article, Milan’s councilor for productive activities, Franco D’Alfonso, was quoted saying that Milan should not agree to any potential request by “designers like Dolce and Gabbana if they submit requests for public spaces. [Italian] fashion is an excellence in the world but we don’t need to be represented by tax evaders.”

Gabbana issued a strong response to D’Alfonso via Twitter, harshly attacking the city of Milan. “The City of Milan makes me sick!!!” and “Shame on you!!! Boors” were two such tweets.

On Saturday, the designers took a two-page ad in Italy’s main newspapers, Corriere della Sera and La Repubblica, saying they were “no longer willing to be unjustly subjected to the accusations of the Guardia di Finanza [the country’s tax police], the Agenzia delle Entrate [the Revenue Service], the prosecutors’ attacks and the media shackles endured for years now.” They explained they were “indignated” by the way the city of Milan had treated them, a city they were “grateful to” but also one whose “prestige and international visibility” they had contributed to. The designers, who each signed the ad, noted that the 250 employees of the nine Milan stores will be regularly paid despite the three-day closure.

Also, Dolce and Gabbana attached an excerpt from a list of Milan’s main 2005 tax contributors published by newspaper Il Sole 24 Ore in 2008 where they ranked fourth and fifth, respectively. This was before the fiscal authorities began their attacks, they said.

On the second page, the three lawyers who defended the designers during the trial explained how the designers were acquitted on the second count they were originally charged with, which regarded the valuation of the company and the tax rate paid, underscoring that the judge deemed there was no case to proceed. The lawyers are also going to appeal the guilty sentence related to the 2004 sale of the Dolce & Gabbana and D&G brands to the designers’ Luxembourg-based holding company, Gado Srl. The Italian tax police reportedly consider Gado essentially a legal entity used to avoid higher corporate taxes in Italy.

On Sunday, Milan’s mayor, Giuliano Pisapia, responded in La Repubblica saying that he and the city were the ones to be “indignated” and that the designers should apologize to Milan.

 

[CharlottefromCA]

whatevers.. I just hope they don't move to Paris. lol