Dolce & Gabbana have concealed € 1 billion from the tax authorities?

One of the leading fashion houses of Milan has attracted mass-media attention. However, not because of its new collection. Italian tax police became highly interested in one of the leading fashion houses of the country - Dolce & Gabbana. According to Reuters, the famous fashion designers are suspected of tax evasion. The total amount of hidden taxes, according to the Italian tax authorities, is about one billion Euros.

Domenico Dolce has already informed in his tweeter that the fashion house was not involved into the tax fraud. At the same time the Italian authorities still believe that the fashion house is guilty. For example, in 2004 fashion designers sold their rights for Dolce & Gabbana and D&G companies registered in Luxembourg to evade taxes.

The investigation of tax evasion has been conducted since 2007. In 2009 Domenico Dolce and Stefano Gabbana were summoned before a judge, however, the prosecutors failed to prove their guilt. Couturiers were acquitted to the joy of their many fans.

However, the Italian tax authorities were not satisfied and handed the case to the Supreme Court. In November 2011 the case was continued. As a result an Italian judge Giuseppe Gennari gave authorized prosecutors to subpoena the fashion duo again. But unlike the last year's precedent, this time prosecutors withdrew accusations of fraud, charging designers only with tax evasion.

Dolce & Gabbana are not the only Italian celebrities, who have had problems with the Italian tax authorities during the past few years. For example, among those, who had to pay additional taxes, were famous motorcycle racer Valentino Rossi (35 million Euros in 2008) and Italian tenor Luciano Pavarotti (12 million Euros in 2001). Sicilian and Venetian Domenico Dolce and Stefano Gabbana founded their famous fashion house in 1985. For nearly 30 years of its existence they were able to earn the image of the Italian fashion leaders. Among their clients are hundreds of celebrities from Madonna to Sting. The company's turnover is over 500 million Euros per year.