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| Domenico Dolce and Stefano Gabbana |
After more than seven months on trial for tax evasion, Domenico Dolce and Stefano Gabbana have each been sentenced to one year and eight months in prison after being found guilty of tax evasion. A jury met for three hours this afternoon to discuss the legal ruling which is one of three legal procedures that will determine a final verdict. June last month and now we here from the designing duo's lawyers.
The designers had already been hit with a $440 million fine by Italy’s Tax Commission as punishment for their crimes, which stemmed from a 2008 investigation into the 2004 sale of its signature and D&G lines to Luxembourg-based holding company Gado Srl - which Italian authorities believe was a means of evading Italy's high taxes - charges that the designers have strongly denied. The designers' lawyer, Massimo Dinoia, called for the pair to be acquitted of the charges - while prosecutor Gaetano Ruta demanded that Dolce, Gabbana and company board member Cristiana Ruella should be sent to prison for two-and-a-half years. He added that their accountant, Luciano Patelli, should be incarcerated for three years.
Judge Antonella Brambilla ruled in the case on one of two counts. They were cleared of the second count - involving the valuation of their company and the tax rate paid - at an earlier date. Although the case had been dismissed once (in 2011), and though their lawyer had requested a full acquittal in the current trial, Italian judge Antonella Brambilla saw enough merit in the case to put the designers behind bars.
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| Domenico Dolce and Stefano Gabbana |
The designer's lawyer issued a statement soon after, as this: "With great satisfaction, we acknowledge that - for the second time - a judge of the Milan Court has reiterated once more the absolute innocence - because the allegations are untrue - of Mr Domenico Dolce and Mr Stefano Gabbana of the accusation of having unfaithfully declared their earnings (the "notorious" million dollars of Euros).
Even more so, we are satisfied about the result of this part of the verdict because, according to Italian legislation, the statute of limitations had already run out of the charge of misrepresenting income. Despite this fact, the judge felt the need to acquit them on the matter: this means that, according to the Italian law, the proof of their innocent is more than obvious.
On the other hand, as we had the chance to state during the trial, the charges were simply a paradox: the two designers were charged with not having paid taxes for an amount of money which was double of what they had actually earned.
The Court has ruled correctly to what we have always stated and has calmed all the citizens: nobody will ever be held responsible for not having paid taxes that exceed what they had actually grossed.
Frankly speaking, we were astonished that our thesis on the regularity of everyone's behaviour related to the taxes omission payment by Gado, was not accepted. In fact, the CEO of this Company together with other people including the designers, were found guilty of having contributed in a violation of the said taxes declaration omission. We will strongly appeal this part of the verdict, certain that the result will be over-turned in appeal
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| Domenico Dolce and Stefano Gabbana |
The absolution of the designers for the declarations related to their individual earnings is at the same time blatant and dramatic, because, notwithstanding the same fact was ruled as non-existent by today's Court, the Internal Revenue Service might proceed with their operations against them, fining them for the excessive and surreal amount of money of more than 400 million Euros.
Due to the fact that the two designers do not have this kind of money - as the judge stated today, that they have never earned it - most probably the Internal Revenue Service will attack their most precious part of their patrimony, which is their shareholding in the Dolce & Gabbana Company.
We are anxious to even think of what the economic and social repercussion of this act might mean."
Well I cannot see either of these two in stripes, and will probably want to re design the existing prison uniforms with a little more taste and could be the trendiest uniforms ever but I seriously hope it does not come to that!
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