15Dolce and Gabbana - Tax Evasion
Fashion is big in the world, and Dolce and Gabbana are big time players in the business. In 1985, D&B made their debut at Milano Collezioni's Nuovi Talenti. This "new talent" venue was perfect for D&B to get instant recognition. Since then, the company has enjoyed
success and is worth over $1.5 billion. But all wasn't rosy for the company. Taxes, taxes, and more taxes -- the company was doing its best to avoid paying taxes. The Italian government was not amused and as times have gotten tight in Europe, they opted to crack down on those who were attempting to avoid paying their fair share. D&B came up on their radar. Stefano Gabbana and Domenico Dolce were both arrested on tax evasion charges. They ended up getting a 20-month suspended sentence and a whopping $1-billion charge in taxes and fees. They had set up a fictitious company to help shield them from their tax liabilities, using it as a false write-off for years. The government caught up with them. They have been back and forth with the Italian courts that have changed their minds on their guilt depending on who was being paid off and when.