Fashion sentence costs of 343 million euros

05.04.2013

Now, the creators of famous Italian brand Golce&Gabbana can both be boast of not only their fashion and expensive collections, but also of one of the loudest trials about tax evasion.

Yet, in 2007, the Italian authorities have blamed fashion designers in evasion of paying 420 million euros for Italian tax authorities. For several years the attention of tax and judicial authorities was focused on this stylish couple. It was started when the tax authorities have found that designers have sold their popular brands Dolce & Gabanna and D & G to a company named Gabo Srl, registered in Luxembourg and owned by them too. After a tax investigation tax authorities in Italy have come to the conclusion that designers transferred their business to another jurisdiction, in order to avoid paying high taxes in Italy, and because of that, the treasury of Italy haven`t received about 1 milliard euros.

In 2011, the accusation was withdrawn from the designers as unreasonable, but in 2012, the case was reviewed again. As a result in 30 of March 2013 the Appeals Chamber of the Italian Court recognized the designers guilty in tax evasion and imposed a fine of 343 million euros.

Based on: http://www.corriere.it/

Expert’s opinion

It looks suspicious and reminds of saga over Berlusconi trials: convicted, then justified, the prosecution was canceled, as unreasonable, then a fine was imposed again, but in smaller proportion.

Such approach can be found strange. More over, it is clear, that such wealthy designers can afford them very good lawyers to help with legal affairs. Mikhail Khodorkovskiy had too many accusations, despite the fact that he was led to PwC, the case looks more like an ordered and closely connected to policy.

Domenico, Stefano - hold on! All the ladies of the fashion world stands by your side!

Yaroslav Lomakin ( Managing partner of “Honest&Bright” company)