This week's current event is taken from a NY Times article about the recent uproar over the supposed tax evasion by Mr. Dolce and Mr. Gabbana. The city of Milan has recently accused and brought to trial the two designers for some pricey tax evasion which resulted in slanderous comments and rumors in Italian newspapers about what really happened. The two designers even shut down their Dolce & Gabbana boutiques in Milan due to the vicious comments made about the ordeal. Their tax issue is still being resolved in Italy because the designers believe that they have been able to pay a tax rate issued by Luxembourg since 2004 instead of the much higher tax rate in Italy. Since the Italian government will not let the case rest on issuing a smaller penalty to the men than originally issued, the case will have to be appealed a few more times before it's over. The designers are especially worried about having to pay the heavy fines requested by the government because they believe that they will be forced to sell and close the company to be able to come up with the money.
This issue is not rare among the fashion world at all, however, this is especially bad for the industry and other high fashion designers. Companies don't want a bad rep spreading among their high dollar brands and investors and are also concerned that this is happening to such a profitable and iconic company. What will happen if Dolce & Gabbana is forced to close? It's not clear how everything will play out, but the final decision in this case will surely hit the fashion world and its leaders hard.
article url:
http://www.nytimes.com/2013/07/26/business/global/a-label-mr-dolce-and-mr-gabbana-dont-like.html?ref=fashion&_r=0
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