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Dolce & Gabbana hit with tax evasion fine

Iconic Dolce & Gabbana fashion house hit with huge 343 million Euro tax evasion fine by Italian court.

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Actress Scarlett Johansson attends the Dolce & Gabbana Spring/Summer 2012 fashion show as part Milan Womenswear Fashion Week on September 25, 2011 in Milan, Italy. (Vittorio Zunino Celotto/Getty Images)

The iconic Dolce & Gabbana fashion house has been hit with a massive 343 million euro fine for tax evasion by an Italian court, a charge that representatives of the company plan to appeal.

Fashion partners Stefano Gabbana and Domenico Dolce lost their appeal of the huge fines on March 26th in an Italian court, and could also face five years in prison each if the charges are upheld.

Read more from GlobalPost: Dolce & Gabbana tax evasion trial begins in Italy

The court case against the duo began in December 2012 to much media fanfare, after they were accused of failing to declare taxes on $550 million or 420 euros in revenue in Italy, after moving their brand to the noted tax haven of Luxembourg in 2004.

Prosecutors also claim Dolce & Gabbana sold their firms to a holding company at prices well below the market value, charges the fashion house vehemently denies.

According to AFP, the two designers founding of Gado in Luxembourg constituted an attempt to defraud the state, an extremely serious charge

The Italian court found that Dolce & Gabbana had "violated legislation with the sole objective of procuring a fiscal advantage," according to the Italian ADN Kronos agency, added AFP.

Dolce & Gabbana cofounder Stefano Gabbana went on the warpath on Twitter after the ruling, claiming that the charges were false.

"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," said Gabbana on Twitter, according to the Independent.

"I am interested in making clothes and that's all. They can do and say what they want," he said of the court.

http://www.globalpost.com/dispatch/news/business/130401/dolce-gabbana-hit-tax-evasion-fine