By Mikkel Hyldebrandt, Fashion Director
One of the world’s most famous fashion brands is facing some challenging times. More specifically, the duo behind Dolce & Gabbana – Domenico Dolce and Stefano Gabbana – have both been convicted of major tax evasion in Italian court on Wednesday.
The two men were found guilty of avoiding $1.3 billion (in U.S. dollars) in taxes. According to media sources their sentence of one year and eight months in jail was suspended, but the duo was still ordered to pay a penalty of $670,000 to tax authorities.
Dolce and Gabbana have been under the intense searchlight of Italian tax authorities since 2007 when the fraud investigation began and a judge initiated a separate fraud and tax evasion case on the pair.
It was later determined by the Italian High Court that the duo couldn’t be prosecuted for fraud, but tax evasion was still on the table. The lengthy inquiry has now reached its end and the two Milan fashion icons are left to deal with the harsh verdict. It doesn’t seem likely that Dolce or Gabbana will face actual jail, however, the conviction will be a permanent stain on their records.
The decision in the case was immediately appealed by Dolce and Gabbana’s defense. Three other upper management employees were also convicted for sophisticated tax evasion while one was acquitted.
How this will affect the brand is hard to tell, but we are pretty sure that prison stripes will not be a part of the next fashion collection from the duo…