Orange is NOT the new black for Dolce & Gabbana

Stefano_Gabbana_Domenico_Dolce_Spring15Domenico Dolce and Stefano Gabbana have been found not guilty of tax evasion in an Italian appeals court.

This means the duo will not have to pay over $434mil USD, nor face any jail time. If the Corte Supreme di Cassazione had affirmed the lower courts’ decision, it would mean the end of Dolce & Gabbana as we know it. The designers made previous statements that they would close the doors to the Italian luxury house if they were forced to pay the hefty fines.

This is indeed good news for the design powerhouse as well as fashionistas across the world!

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.