20 June 2013

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Fashion Designers Dolce & Gabbana sentenced to 20 months in jail for tax evasion with heavy fines

Fashion Designers Dolce & Gabbana sentenced to 20 months in jail for tax evasion with heavy fines

The fashion designers were found guilty at a court in Milan, Italy, of failing to declare £850million ($1.34billion) in income tax to authorities.

Fashion designers Domenico Dolce and Stefano Gabbana were handed a 20-month suspended prison sentence and a heavy fine for hiding hundreds of millions of euros from the Italian tax authorities.

Public prosecutor Gaetano Ruta had asked for a two and a half year jail term. However, the two designers will have to pay 500,000 euros as a first installment of a fine that could reach 10 million euros.

The judge ruled that the pair sold their brand to Luxembourg-based holding company Gado in 2004 to avoid declaring taxes on royalties of about 1 billion euros.

Prosecutors said at the time that both the Dolce & Gabbana and D&G brands were sold for just  £309million ($483million), about one-third of their true market value, which was decreed a further attempt to avoid paying millions in taxes.

Gado is nothing but a shell company that took no administrative or financial decisions.

Such types of crimes are very common in India

Do you know any one going to Jail for doing such type  of crime that is hiding money from tax department in India?

Even on the name of International treaties, our government does not allow the Indian citizens to know that names of criminals who avoid the taxes and cheat the India.

Reality views by sm –

Thursday, June 20, 2013

Tags – Fashion Designer Punished Dolce & Gabbana

5 comments:

MEcoy June 20, 2013  

yaicks! how will they run their business now

Kirtivasan Ganesan June 21, 2013  

It will be better if you can cite one example where Indian company got scared of taxmen and lowered price to avoid taxes. Tata, RIL are public companies. They are certainly not scared of taxmen.
I cannot say the same about closely held companies.

Kirtivasan Ganesan June 21, 2013  

Pardon me. Allow me to write some more.
N Mahalingam is a businessman and into politics. I heard of stories from my collegemates only of his business acumen.
Point is, it is difficult to say.