Dolce & Gabbana Tax Fraud Case Dismissed

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April 1, 2011 | 12:05pm EST

Executives at fashion house Dolce & Gabbana have been cleared over allegations of tax fraud after a judge in Italy threw out the case against the company.
Italian officials have been investigating Domenico Dolce and Stefano Gabbana’s stylish firm over accusations of tax evasion amounting to up to $1.4 billion over claims bosses set up a company in Luxembourg to control the group’s brands to avoid paying Italian taxes.

The case had been heading to trial but it came to a halt on Friday when a judge at a preliminary hearing in Milan ruled there is not enough evidence to proceed. Judge Simone Luerti dismissed the case and closed the file on Dolce and Gabbana as well as five other people who were also under investigation, according to the AFP.