Dolce and Gabbana Found GUILTY!

Fashion designers Domenico Dolce and Stefano Gabbana were found guilty of tax evasion. A Milan court ruled on the case this morning.

dolce and gabbana

The designing duo have been hiding hundreds of millions of euros from the tax authorities according to reports. The case dates back to 2004. They sold their brand to Gado, a Luxembourg-based holding company, to allegedly avoid declaring taxes on royalties of about 1 billion euros ( equals about $1.3 billion). Prosecutor Gaetano Ruta explains, “”Gado was 80 percent controlled by D&G srl which was owned 50 percent each by Dolce and Gabbana.”

Both deny any wrongdoing and were not present in court.

Reps have not made any statements yet.


UPDATE: The judge sentenced them to prison. The breakdown of their appeal and jail time is here: The Beauty Stop