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    Dujibana Has Made New Progress In Escaping Huge Tax Charges.

    2015/11/2 14:47:00 29

    Du GabbanaEscaping Huge TaxAccusation

    In 2013, on the Bloomberg TV interview, the two founders of Dolce &Gabbana, the famous designer brand in Italy, said that because of the allegation of tax evasion, their fashion Brand Company would no longer sell public shares, and the brand might even have to end its operation.

    The Supreme Court of Italy has recently overturned the tax evasion allegations against Domenico Dolce and Stefano Gabbana.

    According to the latest news from Milan, the Italy Supreme Court has pointed out that there is no criminal law relevance in regard to fiscal avoidance.

    This is the core reason why the Supreme Court of Italy overthrew the Domenico Dolce and Stefano Gabbana tax evasion accusations.

    The Supreme Court of Italy announced the motive behind the ruling for the first time in a year after a tax ruling was made against the two designers.

    The investigation began in 2008, and was led by Guardia di Finanza, a police agency under the Ministry of national economy and finance of Italy.

    The Supreme Court stressed that "obvious positioning" and "real power management" are the terms of the "normative conditions" for the whole trial. "Because no additional financial consistency and controversy have been taken into account, resulting in the reorganization and accusation of Dolce &Gabbana."

    The general court judge is based on the misleading investigation.

    Luxembourg

    The understanding of headquarters, the analysis of the effectiveness of its activities in the area, and the reasons why Gado chose to set up headquarters in the area are in a state of "ignorance and contradiction".

    The tax authorities were also asked to compensate the company for the loss of up to 500 thousand euros ($550 thousand), but the Supreme Court rejected the claim that the loss could not be measured according to reasonable economic level and moral level.

    The Supreme Court said, "financial opportunistic is not illegal, it is only a means for entrepreneurs to make use of the opportunities offered by the market, or a more convenient financial treatment."

    It is illegal to take advantage of the fact that "financial acquisition is a strategy that is contrary to reality or a violation of laws and regulations by YISHION strategy".

    The court said: "exclusive research on financial accounting is not in itself sufficient evidence of tax evasion, especially when economic operations are real and effective."

    This behavior can be vaguely considered qualified.

    With regard to the alleged designer and other defendants suspected of missing the tax declaration, the High Court emphasized that the judgment made by the general court was wrong.

    Designer

    The alleged tax evasion was 416 million euros (US $533 million 200 thousand), which was related to the turnover of Dolce &Gabbana and D&G brands in 2004 and the Gado Srl of Luxemburg, a designer holding company.

    Italy's tax office said that Gado is essentially a legal entity, which can be exempted from high corporate taxes in Italy.

    Before the end of October 2014, the Supreme Court held this 7 year long period.

    Economic disputes

    A decision was made that Dolce &Gabbana, which was involved in it, was acquitted by the junior judge in 2011, then dismissed in the high court and subsequently charged with a new tax evasion. Finally, the court was tried before the Supreme Court for two general court trials.

    The judgment also closed the case to other defendants, including general manager Cristiana Ruella, chief financial officer Giuseppe Minoni and accountant Luciano Patelli. The court considered the case to be a false accusation.

    The only defendant who will continue to be tried is Domenico Dolce's brother Alfonso Dolce, who is the legal representative of the company, but in this case, the limitation of action will expire on November.

    In recent years, the Dolce &Gabbana brand has attracted the attention of the big luxury brands. When the tax evasion hearing was held, the general manager of Dolce &Gabbana attended the response to the judge's question and revealed that LVMH's fund L Capital and Kering group had bought negotiations.

    LVMH's L Capital board hopes to buy a minority stake in Dolce &Gabbana, while another Kering group that wants to buy Dolce &Gabbana wants to buy Dolce &Gabbana wholly-owned, and hopes that Domenico and MR will continue to serve as brand designers.

    In the past few years, under the situation of debt crisis in the euro area, Italy's tax authorities launched a tax investigation on many famous brands in China. The local media analyzed that the move was intended to reduce the pressure on treasury bonds through such means.

    Rumor has it that in the past few years, several well-known fashion brands have paid hundreds of millions of euros to the tax authorities to avoid public inquiries.


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