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Fresh from their hosting duties at their "Fabulous in Cannes" party, comes the news that Domenico Dolce and Stefano Gabbana could be facing $1.12 billion for tax evasion. The designers have denied the allegations that are separate to investigations undertaken in March last year, which are believed to be still ongoing.

These latest charges relate to the sale the Dolce & Gabbana and D&G brands to the designers' Luxembourg-based holding company Gado Srl in 2004. They claim they only received $447.8 million from the transaction, and paid what was owed to authorities.

"It's a paradox! Since when does one have to pay taxes on money one never actually collected?" the designers said in a personal statement. "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."

Hmm... sound familiar? Roberto Cavalli was only recently cleared of tax evasion after six years. I'm sure Dolce & Gabbana are hoping for a quicker resolution.

[Source / Photo: WENN.com]