A good economic essay example!!!
Cracking down tax evasion can compliment the use of the austerity measures.
Dolce & Gabbana, an Italian fashion house giant had been put litigation on its tax evasion act by failing to declare revenues of around €840 million in Italy currency.
Investigators closed their inquiry against founders Domenico Dolce and Stefano Gabbana, as well as five other people, but no formal charges were yet presented, Il Sole 24 Ore said, citing prosecutors in Milan.
Dolce & Gabbana was accused of creating a company in Luxembourg in 2004 and 2005 that was given control of the group's brands, thereby avoiding Italian taxes. The Luxembourg company, Gado, was in fact run from Italy.
The unpaid taxes amount to €420 million, Il Messaggero daily reported.
Italy has been cracking down on widespread tax evasion in recent months in an effort to raise government revenues following the global economic crisis.
Dolce & Gabbana was set up in 1985 and employs more than 3000 people, with a network of 116 shops and 17 factory outlets in 2009, the group's website said.
