Valentino Faces Massive Fines for Tax Evasion

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Valentino and Giancarlo Photo: Getty Images

Valentino Garavani and business partner Giancarlo Giammetti have been fined $39 million in Italy for tax evasion. Authorities allege they moved their residence outside of Italy while keeping their business there and didn't report their earnings. The managing director of their London office told WWD the pair "moved their residence and all their interests to London more than 10 years ago, since the sale of their Maison." He added Valentino and Giancarlo would cooperate with authorities, though their positions had already been "deemed entirely legitimate and regular."

Italian tax law happens to be a weak point in our vast expanse of knowledge (Posh Spice takes up a lot of room — what can we say?), but we imagine these two will be fine. Dolce & Gabbana got in trouble with Italian tax authorities for moving their business outside of Italy, but paid most of it off and should stay out of trouble. And Roberto Cavalli was recently cleared of tax evasion charges filed in 2002 related to a $3.2 million remodeling job on his Tuscan villa. Only a six year headache. No big deal.

Valentino, Giammetti Cited in Tax Probe [WWD]