Is D&G Being Charged with Tax Evasion?

Italian police are recommending that Domenico Dolce and Stefano Gabbana be brought up on tax evasion and abuse of rights with fines of no less than $1.12 billion. The charges are claimed to be related to the 2004 selling of Dolce & Gabbana and D&G brands to the designers' holding company, Gado Srl. The designer duo said in a personal statement that these accusations are all due to misguided police calculations that value the brands at $1.37 billion in 2004, to which the designers quip "we wish!" They also said in their statement, "It's a paradox! Since when does one have to pay taxes on money one never actually collected? It's an absurd demand based on a completely abstract calculation. This higher taxable sum is a virtual figure we have never received, the result of a theoretical accounting exercise."