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Dolce & Gabbana cleared of tax evasion

Dolce & Gabbana designers Domenico Dolce and Stefano Gabbana will not stand trial for tax evasion.

A Milan based prosecutor has dismissed the charges against Dolce, Gabbana and five others involved and said there would be no trial. The designers had been accused of allegedly evading taxes of €416m (£366).

The designers previously denied the allegations which accused them of selling the Dolce & Gabbana and D&G brands to Gado Srl, a holding company based in Luxembourg, in 2004 but running the businesses from Italy, where taxes on sales royalty are higher.

In 2009 the pair released a statement to say they had declared and paid everything owed to authorities and said the accusations were based on a “completely abstract calculation”.

After the preliminary court hearing last week Giuseppe Bana, lawyer for the designers’ accountant, Luciano Patelli, said: “I am very pleased with this decision and I’m not in the least surprised. The judge prevented this from going too far, it’s an investigation that should never have been initiated in the first place.”

A separate investigation for tax irregularities at the group was also dismissed last week, which accused the group of not paying €200m (£176) worth of taxes.


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