Dolce Gabbana’s tax evasion trial now re-opened could lead to criminal conviction

Domenico Dolce and Stefano Gabbana

The Italian Supreme Court outlined this week the reasons behind its decision to re-open the tax evasion trial of Domenico Dolce and Stefano Gabbana. In a statement that could set legal precedent in Italy, the Italian Supreme Court said tax avoidance or tax mitigation on an earnings declaration is a criminal offence, under the law. Tax avoidance by creating a separate legal entity was not, until now, a criminal offence. The decision of the Italian Supreme Court means there will be a hearing before a new judge for Domenico Dolce, Stefano Gabbana and some of the board members, in April. They could face a 3 year prison conviction or a fine of up to 1 million euros.