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AFP
Published
Mar 25, 2011
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Judge to decide on Dolce & Gabbana trial April 1

By
AFP
Published
Mar 25, 2011

March 25 - The decision over whether famous fashion house duo Dolce & Gabbana should stand trial for alleged tax fraud was postponed on Friday to April 1 at the earliest, according to Italian media reports.

Dolce&Gabbana
D&G

Milan prosecutor Laura Pedio requested the pair appear in court on charges for fraud of around one billion euros ($1.4 billion) on April 1.

The fashion pair's tax consultant, Luciano Patelli, was interrogated by the preliminary hearing judge Simone Luerti during a hearing on Friday, and also risks trial.

Investigators completed an enquiry into founders Domenico Dolce and Stefano Gabbana, as well as five other people, in October last year.

According to Il Sole 24 Ore business daily reports at the time, the company had failed to declare 840 million euros in revenues.

The reported allegation is that Dolce & Gabbana created a company in Luxembourg in 2004 and 2005 which was given control of the group's brands, thereby avoiding Italian taxes.

The unpaid taxes amount to 420 million euros, one report charged.

Dolce and Gabbana have denied the accusations but no comment was immediately from them or their representatives on Friday.

Italy has been cracking down on widespread tax evasion in an effort to raise government revenues following the global economic crisis.

Dolce & Gabbana was set up in 1985 and employs more than 3,000 people, with a network of 116 stores and 17 factory outlets in 2009.

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