Yesterday an interesting piece of news came up. It looks like the Italian government is onto the big fashion companies, Dolce & Gabbana and Ferragamo who, uhm, forgot to pay their taxes.
How stupid is that? With a company cashing in tens or hundreds of millions of euros, you would expect that eventually, some people from up there will come to check you out and see how well you’re doing and claim their share.
Sounds really stupid, but there might actually be a good and logical explanation to this. You see, any company is always looking to pay less taxes. For large companies that operate on the international market, such as Dolce & Gabbana and Ferragamo, one option was to move their headquarters countries with lower taxes, such as Luxembourg and Holland.
They proceeded and set up companies in those two countries. The plan was good, except they didn’t really operate from there. Although their main office was far abroad, everything the two firms had to purchase in order to design and manufacture their products was done from Italy, and thus, the taxes were supposed to go to the Italian government and not Holland or Luxemburg.
In other words, they screwed up.
Dolce & Gabbana owe about 90 million euros and Ferragamo close to 20.
If they fail to pay that sum, Dolce and Gabbana may spend some time in prison. But I trust they’re gonna find a solution.