|Dolce & Gabbana|
Dolce & Gabbana received a fine of US$ 440.2 million plus interest from the Italian Tax Commission for tax evasion totaling US$ 533.2 million, related to the 2004 sale of the Dolce & Gabbana and D&G brands to the designers’ Luxembourg-based holding company, Gado Srl, as reported by WWD.
According to the Italian Internal Revenue Agency, Gado Srl is essentially a legal entity used by the designers to avoid higher corporate taxes in Italy.
The designers were accused of omitted and unfaithful earnings declarations, but have always denied the charges. They can still appeal the decision to a third degree instance to try to avoid the fine.