About a week ago, London’s Evening Standard reported that fashion designer Valentino had joined the growing list of people who lost money with Bernie Madoff. Then a rep for the designer denied it. What’s really going on?
Apparently, tax evasion.
WSJ: Italian authorities have fined former fashion designer Valentino Garavani and his longtime business partner, Giancarlo Giammetti, €33 million (about $44 million) on allegations of tax evasion.
The authorities allege that the duo failed to declare money they earned while working in Italy, a person familiar with the matter said Wednesday. Spokesmen both for Mr. Garavani and the Italian tax police declined to disclose how much the two men allegedly owed in back taxes.
…The statement added that the two men had moved their residency and “interests” more than a decade ago to London, where they are subject to taxation.
Italian tax laws require anyone who earns more than half of their revenue in Italian territory to declare their earnings. They also state that people who locate the centre of their economic interests in Italy are subject to taxation regardless of whether they declare residency outside the country.