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Dolce & Gabbana appeal Italian tax evasion conviction

November 16, 2013

Stafano Gabbano_left and Domenico Dolce_rightItalian fashion designers Domenico Dolce and Stefano Gabbana have officially filed an appeal of their tax evasion conviction.

Both men were sentenced in June to one year and eight months each in prison after being found guilty of contributing to tax declaration omissions in the 2004 sale of some of their clothing lines to Gado, a Luxembourg-based holding company.

The sale, argued prosecutors, allowed Dolce & Gabbana, as their brand is known, to avoid Italy's high rate by paying a lower tax in Luxembourg.

D&G have consistently denied the charges.

Their 90-page appeal document, filed this week at Milan's courthouse, seeks a full acquittal of the tax charges.

The prime appeals argument is that the two designers "never managed, actually or legally," the Luxembourg-based holding company. The trial judge had considered Gado a legal entity used to avoid Italian taxes on royalties of about 1 billion euros, $1.3 billion U.S.

Enough cash for advertising: Dolce and Gabbana also have said that they cannot afford to pay the back taxes that Italy contends they owe. Shortly after their convictions, they briefly shuttered their boutiques, posting "Closed Out Of Indignation" signs on the doors.

For now, however, D&G apparently have enough money to hire Academy Award-winning director Martin Scorsese to direct Matthew McConaughey and Scarlett Johansson in an arty, black-and-white promotional video for their new fragrance.

This is the director's cut of "Street of Dreams." The shorter version's 3.2 million views placed it atop this week's VideoWatch/VidIQ branded video rankings.

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TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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