Dolce and Gabanna Deny Taxy Evasion

They may be the toast of Cannes, but Domenico Dolce and Stefano Gabbana are certainly not getting any extra special treatment when it comes to paying their taxes. The design duo could be facing $1.12 billion for tax evasion. The controversy surrounds the sale of their brands Dolce & Gabbana and D&G to their Luxembourg-based holding company Gado Srl in 2004. The pair claim they only received $447.8 million from the transaction, and paid what was owed to authorities. The authorities on the other hand claim the market value of the brands was worth a whote lot more than a pesky $450 million and therefore are investigating the boys for tax evasion. The designers have responded with a statement proclaiming their innocence, stating “It’s a paradox! Since when does one have to pay taxes on money one never actually collected? It’s an absurd demand based on a completely abstract calculation.