• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

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
ParkAveFlasher's picture

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?

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