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Dolce and Gabanna indicted for tax evasion

November 24, 2010 12:00:00 AM PST
Fashion duo Dolce and Gabbana have been indicted on tax evasion charges in Italy. According to Women's Wear Daily, Domenico Dolce and Stefano Gabbana each owe the equivalent of $569 million for unreported revenues earned by a holding company they set up in Luxembourg to handle their brand.

The designers claim that the outstanding sum was the result of a theoretical accounting practice and is only a projection, so they should owe no taxes on it at this time.

They will have to settle out of court and pay a fine or they could go on trial in Milan, which could result in a billion dollar price tag and up to three years in jail.