Dolce And Gabbana Sentenced To 20 Months In Jail For Hundreds Of Millions In Tax Evasion

Tyler Durden's picture

The latest casualty of Europe's berserk pursuit of tax evaders everywhere: not some Russian oligarch with a $1 billion Cypriot bank account but famous Italian designers, Dolce and Gabbana. WSJ reports that a Milan court has convicted the designers Domenico Dolce and Stefano Gabbana of tax evasion. The pair were found guilty Wednesday of failing to declare €1 billion ($1.3 billion) in income tax to authorities. The court sentenced them both to one year and eight months in jail.

Prosecutors argued that the pair had evaded taxes on income of €416 million each and €200 million through a Luxembourg-based company. The statute of limitations ran out on a charge of misrepresenting income. The designers have denied the charges.

Two years ago, a judge threw out a tax evasion and fraud case against the pair, whose label Dolce & Gabbana is a Milan fashion mainstay. Italy's high court later ruled the designers could be prosecuted for tax evasion, though not for fraud.

And since this is Italy, we now expect some of this tax evaded cash to be used to grease the local judiciary, earning the duo a deferred prosecution, a little slap on the hand, the loss of some pocket change, and everything going back to normal.

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LawsofPhysics's picture

And no bank CEO is in jail for manipulation of LIBOR and pocketing hundreds of billions - "winning"

Pladizow's picture

Sell italian underwear and dont pay income tax = Jail.

Bankers blow up the world - they get rewarded.

Time for a revolution!

BLOTTO's picture

Why, because a pair of D&G jeans costs $300+ for a pair...

Richard III's picture

Does D&G make soap-on-a-rope pour homme ?

Hard1's picture

C'mon, they are designers, they are used to it

 

(greetings to all my readers at the NSA.  I hope you are used to it as well)

BLOTTO's picture

Maybe D&G can design the straight jackets/jump suits for us commoners when we get to the FEMA camps...to look stylish.

.

Im sure WB7 can come up with something interesting...

The Gooch's picture

I wonder if those "readers" wear skinny-ties too...

 

nope-1004's picture

The liquidity hunt continues.  Not enough money to satisfy govt' obligations.  This will get much worse.

 

jbvtme's picture

when the bureaucrats split with the elites, we've got them...

Herd Redirection Committee's picture

My thinking has been, when the military rank and file realize they have been lied to, and won't get what they have been promised (medical care, pension, education assistance, etc), its a major turning point.

In banana republics, though, soldiers are generally the ones still getting paid in hard currency when everyone else is getting paid in local scrip (fiat).

The Gooch's picture

Military rank and file not so much.

It's THE COPS...

Freddie's picture

Don't they make golden slippers for people like Warren Buffett and his pal Charlie Mungo?

otto skorzeny's picture

If people want to buy them and can afford them who gives a shit.

ebworthen's picture

BLOTTO said:  "Why, because a pair of D&G jeans costs $300+ for a pair..."

Oh the vanity of humanity!

Skateboarder's picture

My jeans are more expensive than yours, so I am better than you.

*is actually wearing $30 ten year old jeans*

The Gooch's picture

Schmidt. $28 @ Tractor Supply Co.

Last forever.

EmmittFitzhume's picture

They will hopefully pay much more than just jail

conspicio's picture

Prior to this verdict the holding company Gado Srl was fined 343,400,000 Euro for not declaring earnings, so yes there was a fine. Pavarotti has been targeted in the past, so was Moto GP champ Rossi. The high profile convictions are a direct reflection of high profile evasion. Coincidence or psychic phenomenon? I would not expect them to do any jail time whatsoever because this is not the normal history of these types of cases.

 

Insert obligatory "fuck the bankers" outrage here...

StandardDeviant's picture

Why, for trying to protect what they earned from a rapacious gang of thieves calling themselves a "government"?

It's almost as if you believe that others have a right to part of what you produce.

GolfHatesMe's picture

Attorney obviously not the Honorable Jon Corzine

Dr. Engali's picture

Where exactly is Corzine again?

Bay of Pigs's picture

I will report in if I see him around. Maybe buy the poor slob a drink?

Boondocker's picture

That sudden realization that you are one of the little people......ouch!

EmmittFitzhume's picture

They're punishment should be worse

Lendo's picture

They are punishment what?

EmmittFitzhume's picture

I was replying to LawsOfPhysics

citrine's picture

 

This is what I believe, Lendo meant:

Their is the possessive pronoun form. This form is used to express that "they" have a specific quality, or that something belongs to "them".

Herd Redirection Committee's picture

Usually ZH is for discussing matters slightly more important than perfect grammar.  Just sayin'.

ParkAveFlasher's picture

It used to be that mistaking "their" for "they're" got you 10 junks. 

jimmytorpedo's picture

My current favourite is 'loose' instead of lose.

Cobra's picture

Naa. That's a European thing - like tyres.

StandardDeviant's picture

I don't think that's the case; certainly not in the UK, at least.  "Loose" and "lose" have completely different meanings here too.

Steve in Greensboro's picture

"...ZH is for discussing matters slightly more important than perfect grammar..."

Oh yeah!  My favorite ZH comment was the guy who explained why bidets were better than toilet paper.  "New you can use" and classy at the same time.

holgerdanske's picture

Is this a google translation of some serbo croatian saying, --- or what? ;-)

Lendo's picture

I can't blame them for not paying taxes.

otto skorzeny's picture

Tax evaders are heroes- fuck the leeches in govt.

Lendo's picture

Exactly.  It's idiots like John McCain that can't comprehend why Apple (love or hate them) is doing everything they can, not to hand billions over to the broken government. 

Freddie's picture

So RINO McCain aka Obama stooge can send his fat pig daughter to a fattty farm.   Italian tax laws are sometimes whatever the left wants.  Italians have been screwed over for 2,000 + years on taxes by corrupt politicians.  They know the drill. People joke how the Italians change and go through govts almost every year.  Sure beats the shit Amerika aka USSA has.

desirdavenir's picture

Again, now that states are clear on their intent to crack down on companies income tax evasion practices, what will be the impact to SP500 earnings ?

StandardDeviant's picture

"Avoidance", please, not "evasion".  So far I don't believe anyone has proven that Apple, Starbucks, etc. have actually broken any laws.  They've simply worked creatively within the existing legal framework to minimize what governments can steal from them.

cherry picker's picture

Paying tax is really a crime by aiding and abetting terrorism.  The government is supporting Al Queda rebels in Syria, we know they are terrorists.

We invaded Iraq without cause, murdering a lot of people in the process.  That is terrorism, isn't it?

We have sent missiles into Pakistan and committed collateral damage, that is terrorism, isn't it?

We burned the kids at Waco, that is terrorism, isn't it?

If I pay taxes, .gov may be happy but maybe God won't be.

holgerdanske's picture

Yes, indeed, not only well put, but entirely true.!

Leeches and sycophants, the modern state.

Grin it and bear it, or revolt!

And I think we should all start to write bomb, explosion, assassination etc in everything we write.

That should give them something to do at NSA.

Dead presidents! Also a name of a Rock Band, ain't it??

 

JIHAD  ;-)

Fred Hayek's picture

Their summer collection is rumored to heavily feature stripes and orange jumpsuits.

DOT's picture

Will the jumpsuits have velcro butt flaps?