Domenico Dolce and Stefano Gabbana Found Guilty of Tax Evasion

I had been following this story for a while, and now the Italian court of appeals have affirmed the lower court’s decision on the matter.


In a nutshell, there was an attempt to sell the brand, Dolce & Gabbana, to a holding company in order to avoid crazy Italian corporate tax.

This is similar to the business strategy of having your business incorporated in Delaware as oppose to the state you actually operate in.

The duo was sentenced to a year and a half  of jail time, but my understanding is that they will not necessarily have to spend that time in custody. The case can be appealed again. Since the duo has that kind of money, I don’t see why they shouldn’t try. However, I don’t know anything about Italian law, so I can’t really say if it is something that I would advise my client to do.

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