The date has been set for the tax evasion trial of Italian fashion duo Dolce & Gabanna. Both men will appear in an Italian court on December 3 accused of evading €416 million of tax. Authorities allege that their sale of the Dolce & Gabanna and D&G brands in 2004 to a Luxembourg-based holding company, Gado Srl, was to evade higher corporate taxes in their home country of Italy.
The charges against the pair were originally brought in 2007. However, in 2011 these charges were dismissed by a lower court which ruled there was no foundation for a trial. This decison was then turned over by the Supreme Court in November 2011, stating that “tax avoidance on an earning declaration is a criminal offense under law.” Previously, tax evasion was not considered a crime under Italian law. Dolce & Gabanna now risk a criminal record in addition to huge fines if found guilty. Sure to be one stylish fashion law trial!