Dolce & Gabbana Fined $440 Million For Being Really Shady
Italy's Tax Commission has confirmed an ongoing case against Domenico Dolce and Stefano Gabbana of tax evasion and ordered them to pony up to a $440 million fine. The fashion house was charged with tax evasion worth $533.2 million after the 2004 sale of Dolce & Gabbana to Gado Srl holding company (considered by Italian tax police to be an evasive move for brands looking to thwart higher corporate taxes). Since then, Stefano Gabbana and Domenico Dolce have been in the middle of back-and-forth drama, involving "you're-guilty" "you're-not-guilty" rulings and overturnings, reaching all the way to the Italian Supreme Court (not to mention separate criminal probes that addressed nearly $300 million in unpaid taxes).
Now — obviously — $440 million is a ton
of money, but the brand is valued at $5.3 billion
, which is a pretty rare feat for a fashion label that isn't part of a larger holding company, like Gucci Group or LVMH. The guys have got one more chance to appeal to avoid the fine...but it seems like this saga is coming to a close.