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Dolce and Gabanna fined €343 million for tax evasion

Italian fashion designers are having a tough time with their taxes lately. Only two weeks after Bulgari's tax debacle, Dolce and Gabbana have gotten themselves into hot water on the tax front. Yesterday, Domenico Dolce and Stefana Gabanna were ordered by a Milan court to pay a €343.3 million fine, plus interest, for tax evasion. Gabbana vented on Twitter: "To be accused of something untrue is not a beautiful thing. But in the end who cares, we will all finish up six feet under… I am interested in making clothes and that's all. They can do and say what they want.” The Italian fashion duo has been involved in the court case since 2007, ever since they sold the D&G and Dolce & Gabbana brands to their own holding company, Gado, for €360 million - a third of the company’s true market value - in order to avoid paying €416 million in taxes in Italy. Originally, the pair was cleared of the allegations but the acquittal was overturned in November 2011. Now, the Milan provincial tax commission has ruled in favour of Italy’s tax authority, finding ‘conduct of abuse with the only goal of obtaining a fiscal advantage’ in their investigation into Gabbana. The fashion designers have consistently denied all of the allegations made against them. The duo plans to appeal the courts verdict, which will suspend the payment of the fine pending the appeal, but if they are found guilty, the pair will face a massive fine and a five-year jail sentence. No doubt, they’ll keep us updated via Twitter.
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