One legal case against Dolce & Gabbana was dropped last month, but that doesn't mean the designers are safe from other legal concerns. On Monday, the designers were officially charged with tax evasion over accusations that they were using a Luxembourg holdings company to handle their business safely away from higher Italian taxes.
The designers could face a full criminal trial, and if found guilty, they could be handed a prison sentence of as long as three years or a fine as steep as $1.3 million. According to a statement from Domenico Dolce and Stefano Gabbana: "It's a paradox! Since when does one have to pay taxes on money one never actually collected?"
Although it's probably not comforting to the duo, other high-fashion brands have previously faced similar tax-related trouble in Italy. Labels ranging from Versace to Roberto Cavalli to Etro are among the list of those previously investigated.