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By
AFP
Published
May 17, 2008
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Italian designers Dolce & Gabbana in tax probe: report

By
AFP
Published
May 17, 2008

ROME, May 17, 2008 (AFP) - Italian authorities are probing fashion designers Dolce & Gabbana,creators of luxury items ranging from clothes to beachwear, sunglasses, jewelry and mobile phones, for alleged tax evasion, a report said Saturday May 18th.

Milan tax officials claim Domenico Dolce and Stefano Gabbana set up two front companies in Luxembourg to conceal earnings of 260 million euros (404 million dollars) and thus pay less tax in Italy between 2004 and 2006, the La Repubblica reported without quoting a source.

They couple, who are widely considered two of Italy's richest people, had no comment on the report when asked by the Italian news agency ANSA.

According to figures published online by the finance ministry, each earned some 29 million euros in 2005 and each paid more 12 million euros in taxes during that period.

The designs of their fashion house Dolce & Gabbana are popular in celebrity circles.

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