Milan, Italy (CNS) – Legendary Italian designer Valentino Garavani and his long time business partner, Giancarlo Giammetti, are fined nearly $44 million on allegations of tax evasion.
Rejecting Garavani’s claim that he had transferred residence to London 10 years ago, Italy’s tax office slapped these fines, the weekly Diva reported. Rome’s tax office allege that the duo failed to declare money they earned while working in Italy and also rejected his claim of London residence as “fictitious”, the magazine said.
The authorities at the tax office say that people who locate the center of their economic interests in Italy are subject to taxation regardless of whether they declare residency outside the country. Also, it is mandatory for anyone who earns more than half of their revenue in Italian territory to declare their earnings, according to Italian law.
Garavani and Giammetti sold the designer’s Rome-based namesake fashion house to Holding di Partecipazioni Idustriali in 1998. Thereafter they two worked for it as design and marketing consultants but the house has since undergone numerous ownership changes, and is now part of Valentino Fashion Group.
The group was taken over by private-equity firm Permira in May 2007 after which both of then resigned from the company. Valentino retired from the fashion world after a 45-year international career.
Meanwhile, a statement issued on behalf of the two men said the tax authorities had investigated them in the past and approved their status. They also assured that they “will as always be at their disposal to provide any information that might be asked of them by the competent services.”