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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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Wed, 06/19/2013 - 11:33 | 3671507 LawsofPhysics
LawsofPhysics's picture

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

Wed, 06/19/2013 - 11:33 | 3671517 Pladizow
Pladizow's picture

Sell italian underwear and dont pay income tax = Jail.

Bankers blow up the world - they get rewarded.

Time for a revolution!

Wed, 06/19/2013 - 11:35 | 3671533 flacon
flacon's picture

FREE JON CORZINE!

Wed, 06/19/2013 - 11:38 | 3671550 BLOTTO
BLOTTO's picture

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

Wed, 06/19/2013 - 11:40 | 3671556 Richard III
Richard III's picture

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

Wed, 06/19/2013 - 11:45 | 3671583 Hard1
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)

Wed, 06/19/2013 - 11:56 | 3671629 BLOTTO
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...

Wed, 06/19/2013 - 12:31 | 3671800 francis_sawyer
francis_sawyer's picture

GdF = 1

D&G = 0

Wed, 06/19/2013 - 12:19 | 3671737 The Gooch
The Gooch's picture

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

 

Wed, 06/19/2013 - 11:40 | 3671559 nope-1004
nope-1004's picture

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

 

Wed, 06/19/2013 - 11:49 | 3671596 jbvtme
jbvtme's picture

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

Wed, 06/19/2013 - 11:57 | 3671642 Herd Redirectio...
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).

Wed, 06/19/2013 - 14:05 | 3672206 The Gooch
The Gooch's picture

Military rank and file not so much.

It's THE COPS...

Wed, 06/19/2013 - 13:32 | 3672069 Freddie
Freddie's picture

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

Wed, 06/19/2013 - 11:41 | 3671560 otto skorzeny
otto skorzeny's picture

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

Wed, 06/19/2013 - 12:35 | 3671826 ebworthen
ebworthen's picture

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

Oh the vanity of humanity!

Wed, 06/19/2013 - 12:55 | 3671899 Skateboarder
Skateboarder's picture

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

*is actually wearing $30 ten year old jeans*

Wed, 06/19/2013 - 14:06 | 3672216 The Gooch
The Gooch's picture

Schmidt. $28 @ Tractor Supply Co.

Last forever.

Wed, 06/19/2013 - 11:37 | 3671543 EmmittFitzhume
EmmittFitzhume's picture

They will hopefully pay much more than just jail

Wed, 06/19/2013 - 11:51 | 3671602 conspicio
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...

Thu, 06/20/2013 - 05:33 | 3674429 StandardDeviant
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.

Wed, 06/19/2013 - 17:53 | 3673307 Gringo Viejo
Gringo Viejo's picture

Good Trade.

Wed, 06/19/2013 - 11:32 | 3671509 GolfHatesMe
GolfHatesMe's picture

Attorney obviously not the Honorable Jon Corzine

Wed, 06/19/2013 - 11:33 | 3671511 Dr. Engali
Dr. Engali's picture

Where exactly is Corzine again?

Wed, 06/19/2013 - 11:39 | 3671551 HulkHogan
HulkHogan's picture

20 months in Maui.

Wed, 06/19/2013 - 11:49 | 3671598 Bay of Pigs
Bay of Pigs's picture

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

Wed, 06/19/2013 - 12:32 | 3671803 XitSam
XitSam's picture

Antifreeze?

Wed, 06/19/2013 - 11:33 | 3671514 Boondocker
Boondocker's picture

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

Wed, 06/19/2013 - 11:33 | 3671520 EmmittFitzhume
EmmittFitzhume's picture

They're punishment should be worse

Wed, 06/19/2013 - 11:34 | 3671532 Lendo
Lendo's picture

They are punishment what?

Wed, 06/19/2013 - 11:36 | 3671535 EmmittFitzhume
EmmittFitzhume's picture

I was replying to LawsOfPhysics

Wed, 06/19/2013 - 11:53 | 3671603 citrine
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".

Wed, 06/19/2013 - 11:59 | 3671650 Herd Redirectio...
Herd Redirection Committee's picture

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

Wed, 06/19/2013 - 12:08 | 3671687 ParkAveFlasher
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It used to be that mistaking "their" for "they're" got you 10 junks. 

Wed, 06/19/2013 - 13:12 | 3671976 jimmytorpedo
jimmytorpedo's picture

My current favourite is 'loose' instead of lose.

Wed, 06/19/2013 - 13:49 | 3672142 Cobra
Cobra's picture

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

Thu, 06/20/2013 - 05:36 | 3674431 StandardDeviant
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.

Wed, 06/19/2013 - 14:44 | 3672432 Steve in Greensboro
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.

Wed, 06/19/2013 - 11:59 | 3671649 holgerdanske
holgerdanske's picture

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

Wed, 06/19/2013 - 11:34 | 3671524 Lendo
Lendo's picture

I can't blame them for not paying taxes.

Wed, 06/19/2013 - 11:42 | 3671567 otto skorzeny
otto skorzeny's picture

Tax evaders are heroes- fuck the leeches in govt.

Wed, 06/19/2013 - 11:51 | 3671604 Lendo
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. 

Wed, 06/19/2013 - 13:43 | 3672102 Freddie
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.

Wed, 06/19/2013 - 11:34 | 3671527 desirdavenir
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 ?

Thu, 06/20/2013 - 05:40 | 3674436 StandardDeviant
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.

Wed, 06/19/2013 - 11:37 | 3671546 cherry picker
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.

Wed, 06/19/2013 - 11:52 | 3671610 Lendo
Lendo's picture

Well put..

Wed, 06/19/2013 - 12:07 | 3671673 holgerdanske
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  ;-)

Wed, 06/19/2013 - 11:38 | 3671549 Fred Hayek
Fred Hayek's picture

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

Wed, 06/19/2013 - 11:42 | 3671571 DOT
DOT's picture

Will the jumpsuits have velcro butt flaps?

Wed, 06/19/2013 - 12:23 | 3671749 Jena
Jena's picture

Too noisy.  Scares the sheep.

Wed, 06/19/2013 - 11:41 | 3671563 citrine
citrine's picture

Interesting. Does anyone know, how much they contribute to Italian GDP?

Wed, 06/19/2013 - 11:41 | 3671564 adr
adr's picture

I'm thinking I would get a lot more than 20 months in jail if I failed to pay my taxes for a few years. Look at Wesley Snipes, and he's a celebrity.

So essentially D&G go to jail for 20 months but they get to keep the money? 

Not that I like taxes, but if the tax is there you have to pay. Either everyone obeys the rules or nobody does, there is no in between on that.

Wed, 06/19/2013 - 11:44 | 3671579 otto skorzeny
otto skorzeny's picture

Taxes suck- nobody should have to pay these thieves shit.

Wed, 06/19/2013 - 12:46 | 3671865 flacorps
flacorps's picture

Actually if YOU evaded taxes the IRS would go fairly easy on you, if not neglect you entirely.

Celebrities on the other hand are major targets due to their marquee names ... they're the perfect tools to keep the masses in line. Thus Willie Nelson, the aforementioned Wesley Snipes and Leona Helmsley were pursued hammer and tong...

Wed, 06/19/2013 - 11:45 | 3671581 fonzannoon
fonzannoon's picture

Is anyone watching this slimy disgusting fuck Hilsenrath right now laughing like some douchebag frat boy from a bad 80's movie?

Wed, 06/19/2013 - 11:52 | 3671608 syntaxterror
syntaxterror's picture

When is the CEO for GE going to jail?

Wed, 06/19/2013 - 11:53 | 3671613 Seasmoke
Seasmoke's picture

Good for them. Ciao !

Wed, 06/19/2013 - 11:53 | 3671614 falak pema
falak pema's picture

why the term "berserk"?

And, don't forget that the US is "berserk" when it imposes FACTA on swiss banks. 

And, don't forget if we are where we are its 'cos these rich guys went "berserk" using easy money provided by banks all hocked in derivative bets, in a context of "greed is good" for all who had ways of scamming taxes via front shell companies.

Caymanista bonanza may just be slowing down! 

Wed, 06/19/2013 - 11:57 | 3671637 Kreditanstalt
Kreditanstalt's picture

Instead of these two, who are merely trying to hang onto what they've earned, why not put the governments in jail? 

After all, THEY'RE the ones doing the stealing...

Wed, 06/19/2013 - 12:01 | 3671658 Debt Slave
Debt Slave's picture

Governments and central banks don't like the competition.

Wed, 06/19/2013 - 12:41 | 3671844 IridiumRebel
IridiumRebel's picture

Government would be the "pitcher" in jail.

Wed, 06/19/2013 - 12:13 | 3671715 Herd Redirectio...
Herd Redirection Committee's picture

Well, the contention might be that Dolce and Gabbana made their millions on the labor of others.  Not saying the gov't has more of a right to the money, but there might be some sweatshop workers in Bangladesh with sand in their lungs who might feel they didn't get their share.

Wed, 06/19/2013 - 11:58 | 3671645 Fuku Ben
Fuku Ben's picture

Fruits of the loom enjoying their paid vacation in man land

Wed, 06/19/2013 - 12:15 | 3671723 amadeusb4
amadeusb4's picture

Jeeeebus people. They didn't pay their taxes because they're greedy not because they took some moral stand against statism, terrorism, oppression and what have you.

Actual tax resistors openly state their moral position and give what they owe in taxes to charity to avoid conflicts of interest. Poseurs jump on the tax resistance band wagon after they have been found out. GyB did neither. They simply kept the money and ZH is fawning all over them for it.

Wed, 06/19/2013 - 12:20 | 3671738 Dr. Engali
Dr. Engali's picture

Where exactly is ZH fawning all over them?

Wed, 06/19/2013 - 12:44 | 3671852 otto skorzeny
otto skorzeny's picture

Who gives a shit for their motive- if it's greed that motivates me to keep ALL of the fruits of my labor for myself and my family instead of contributing to the huge pension of some cocksucking cop that would just as soon  smoke my ass than look me in the eye then so be it.

Wed, 06/19/2013 - 12:16 | 3671724 darksun
darksun's picture

They were hit with a Euro 343 million penalty in March 2013 for TAX EVASION but the tax fraud charge was dropped.

The prosecutor wanted 30 months of prison time.

Wed, 06/19/2013 - 12:20 | 3671741 j0nx
j0nx's picture

Looks to me like they both will enjoy prison.

Wed, 06/19/2013 - 12:45 | 3671862 otto skorzeny
otto skorzeny's picture

How do know they don't like pussy- and if they do they get more in a day than you have pulled in a lifetime

Wed, 06/19/2013 - 12:26 | 3671766 holgerdanske
holgerdanske's picture

Apropos Italy.

I was recently traveling in a train from Italy toward the Swiss border. Shortly before we got that far, three or four men in civilian clothes, but each with a yellow plastic vest with "financial police" or similar, came walking up through the train. They passed me, and a little while later, I saw they had stopped in front of a young lady from Hong Kong, who was traveling with her parents. She could hardly be more than 17 or 18.

They wanted to know what was in her rather big bag. She asked them to show any form of ID. They didn't have any. !! They continued to harass her and threatened to take her off the train, which in the meanwhile had stopped before the border.

She calmly and steadfastly insisted on seeing ID and they brought another 2 men into the compartment.

She was brave! clearly not used to be treated like this and eventually they left after having made a feeble attempt to search the bag.

But it made me think. Europe is turning into a state sponsored terrorist state against their own population. Maybe the same is happening in other parts of the world. Is this really the world we want to live in?

I think it is time for a change, I think we should seriously stand up for our rights and tell the government to take a hike. You hear about it, but it is only when you really experience it that it fully sinks in.

Fascism.

Wed, 06/19/2013 - 13:34 | 3672055 i-dog
i-dog's picture

Excellent anecdote. I lived in Hong Kong for many years and can confirm that Chinese women are proud and tough cookies!

None of us should ever forget that we are sovereign individuals and that the "state" is a fictitious construct that is bound by laws and rules of procedure.

As a frequent traveller, I am often confronted by officials acting on "departmental guidelines" or, simply, what they think they can "get away with". I accept none of it and demand that they follow the actual written law to the letter.

A little while ago - in a moslem country - my insistence on them following the law and proper procedure to the letter resulted in a plane being delayed by an hour during a 'mexican standoff', before I [bloody mindedly] insisted on achieving a resolution and chose to let the plane go without me. The end result was receiving satisfaction, compensation for the delay, free accomodation while waiting for the next connecting flight, and an official apology from the Director of Transport - plus an assurance from my own country's consulate that they would change their own "anti-terrorism" guideline (which was at the heart of the matter, since that was my next destination).

DON'T LET THEM TREAD ON YOU! Make them follow the laws that they themselves pass.

Wed, 06/19/2013 - 12:28 | 3671780 EastCoast90
EastCoast90's picture

I've always been more of a Louis Vuitton guy anyways.

Wed, 06/19/2013 - 13:07 | 3671957 Toolshed
Toolshed's picture

"I've always been more of a Louis Vuitton gay anyways."

FIFY

Fri, 06/21/2013 - 09:45 | 3678924 EastCoast90
EastCoast90's picture

Don't hate.

Wed, 06/19/2013 - 12:34 | 3671808 ebworthen
ebworthen's picture

They'll have some really pretty watches to witness their time pass, eh?

Too bad they aren't bankers or they would have received a bonus instead of jail time.

Wed, 06/19/2013 - 12:41 | 3671848 Satan
Satan's picture

In Italy being sentenced to prison and actually going to prison are two completely different things.

Wed, 06/19/2013 - 12:46 | 3671870 otto skorzeny
otto skorzeny's picture

They sure had a hard-on for amanda knox.

Wed, 06/19/2013 - 13:20 | 3672009 KashNCarry
KashNCarry's picture

They probably refused to pay the proper bribes, and so the fasionista's will do a little time until it blows over and they can pay the proper bribes...

Wed, 06/19/2013 - 16:19 | 3672946 JLee2027
JLee2027's picture

No one actually goes to prison in Italy unless the sentence is 3 years or more. Apparently, it's been that way for decades.

Wed, 06/19/2013 - 17:34 | 3673227 Amagnonx
Amagnonx's picture

The only thing they did wrong as far as Im concerned, is they didnt spend the money on building an army of assassins to deal with their fascist govt.

Thu, 06/20/2013 - 10:03 | 3675043 ZH11
ZH11's picture

They were not evading tax! They were just making sure their payments of tax were fashionably late!

Anyway, to two gay Italians prison is no punishment, should have made them wear uncoordinated colours in public for three months, really hurt 'em like.

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