Jail Time for Designers "Dolce and Gabbana" - Tax Evasion

Italian fashion designers Domenico Dolce and Stefano Gabbana have been sentenced to jail in Italy for one year and eight months for tax evasion.

They were accused of hiding millions of euros from Italian tax authorities.

The pair, whose customers have included Madonna, Kate Moss and Kylie Minogue, were not at the trial, deny the charges and have appealed.

Dolce and Gabbana have not commented on their sentences, which have been suspended pending their appeal.

The investigation by the Italian authorities began around six years ago as part of a government plan to crack down on tax avoidance.

At the hearing on Wednesday, the judge ruled that the designers moved their brand to a Luxembourg-based holding company Gado - an anagram of their two surnames - in 2004.

He said they had done this to avoid declaring taxes on royalties of around 1 billion euros (£833m; $1.3bn).

Prosecutors alleged they sold the business for well below actual market value.

They were initially cleared of the charges at a previous trial in April 2011 but Italy's highest court overturned that ruling, ordering that the case should be sent back.

More... http://www.bbc.co.uk/news/business-22977174

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Madonna of Violating Tax and Migration Legislation in Russia

The singer allegedly wasn’t allowed to perform in St. Petersburg last August on the type of visa she had.

Eight months after Madonna’s concert at St. Petersburg’s sports and concert center Peterbugrsky, which raised quite a bit of controversy at the time, Russian authorities claim that by giving a commercial performance, the singer violated the terms of her visa.

Last week, Vitaly Milonov, a notorious St. Petersburg legislator known for authoring the city’s controversial anti-gay law, which came into effect last year, initiated a probe into the case. He claimed that Madonna violated Russia’s tax and migration legislation by performing on the wrong type of visa and, consequently, failing to pay applicable taxes on her fee.

“I don’t like that someone collected Russians’ money and didn’t pay taxes,” Milonov was quoted as saying by RIA Novosti wire service, adding that, according to his information, Madonna’s fee for the show was $1.1 million.

Later, the foreign ministry joined in, confirming that the singer’s visa did not allow her to give a commercial performance, the Russian daily Izvestia reported. According to the foreign ministry, Madonna arrived in the country on a single-entry three-month visa that was issued based on an invitation from the culture ministry and limiting the purpose of her visit to “cultural relations.” To be able to perform, the singer should have obtained a work permit, the foreign ministry said.

Madonna’s performance in St. Petersburg stirred controversy because the singer supported the city’s gay community against the newly adopted law during the show, and also voiced support to the jailed Pussy Riot members, whose trial was in progress at the time. In the wake of the concert, a group of the city’s residents tried to sue the singer for the violation of the anti-gay law, but lost.

Read More... http://www.hollywoodreporter.com/news/madonna-accused-by-russian-authorities-443985