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ITALIAN OF THE WEEK

FASHION

Dolce & Gabbana: from catwalk to courtroom

After nearly three decades building the global fashion brand D&G, Domenico Dolce and Stefano Gabbana are now facing prison terms and, potentially, the end to their illustrious careers. They're our Italians of the Week.

Dolce & Gabbana: from catwalk to courtroom
Stefano Gabbana (L) and Domenico Dolce established D&G in 1985. Photo: Giuseppe Cacace/AFP

Who are Dolce and Gabbana?

Sicilian Domenico Dolce and Stefano Gabbana, from Milan, are famed for creating the D&G fashion house, which since its founding in 1985 has expanded into 40 countries and in 2011 made €1.1 billion. The pair were jointly ranked as the 11th richest in Italy, behind former Prime Minister Silvio Berlusconi and chocolatier Michele Ferrero. 

How did they find fame and fortune?

Dolce is the son of a tailor and grew up surrounded by chats about cloth and style. Gabbana's childhood in the country's fashion capital inspired him to enter the industry; by the time he met the D to his G the pair already had their minds set on creating collections.

The self-made millionaires met when Dolce was working as an assistant to a designer in Milan and Gabbana called to ask for a job. They agreed to meet at a party that night, the pair told The Telegraph newspaper, cringing at the memory of Dolce dressed up as a priest.

Gabbana forgave him for following the unusual fashion choice and their working relationship soon developed into romance.

This sounds risky; how did their relationship affect D&G?

The romance lasted for more than 20 years, until the pair separated in 2005. 

"When Domenico and I split up the sadness was in my heart and my mind, not my clothes…I was sad and it (wealth) didn't change my sadness into happiness," Gabanna told the Observer newspaper.

"The love story of me and Domenico is not finished, there are many different loves and now we are best friends," he added.

Dolce and Gabbana continue to work side by side; the continued success of the brand is testamant to their strength as a design duo.

Why are they in the news?

This week the pair swapped the catwalk for the courtroom, as they were found guilty of tax evasion and sentenced to one year and eight months in prison. They were also ordered to pay a fine of €500,000 to Italy’s national tax agency, for transferring control of D&G to a shell company in Luxembourg, allegedly to avoid paying €200,000 in Italian tax.

Gabbana took to Twitter in April to protest his innocence: "All that I care about is making clothes, that's all. Let them do and say whatever they want. To be accused of something that's not true is not a pretty thing, but the heart of the matter is, who cares, we'll all end up in the ground in the end," he said.

Is this the end of D&G?

Under Italian law the sentence is suspended while Dolce and Gabbana appeal, so they won’t have to design their black and white stripes with matching ball and chain just yet. Besides, the pair have over 3,000 people working for them so the brand will continue if they are to take a ‘sabbatical’.

Who’s in their entourage?

Through their work Dolce and Gabbana have a habit of attracting the biggest names in music. Kylie, Madonna and the late Whitney Houston have all performed draped in D&G. This is no mean feat; Madonna’s 1993 world tour demanded 1,500 costumes. 

Last year the pair produced a book about young football players, with photographs taken by Dolce. They also sponsor A.C. Milan football club, ensuring a male and female following.

Do they do more than dresses?

Yes. Since their first self-produced collection and fashion show, Real Women, in 1986, the pair have expanded in every fashionable direction. The pair have produced books, perfumes, sunglasses and smartphone cases, to name but a few. In 2006 they opened the Dolce&Gabbana GOLD Restaurant in Milan, giving fashionistas the chance to show off their designer wear.

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TAXES

Beskæftigelsesfradraget: What is Denmark’s employment allowance?

Denmark's government may soon announce changes to its tax reform plans, which will give all wage earners a bigger employment allowance. What is this and how will it affect foreigners' earnings?

Beskæftigelsesfradraget: What is Denmark's employment allowance?

What is the employment allowance? 

The Beskæftigelsesfradraget (from beskæftigelse, meaning employment, and fradrag, meaning rebate) was brought in by the centre-right Liberal Party back in 2004, the idea being that it would incentivise people to get off welfare and into a job.

Everyone whose employer pays Denmark’s 8 percent AM-bidrag, or arbejdsmarkedsbidrag, automatically receives beskæftigelsesfradraget. Unlike with some of Denmark’s tax rebates, there is no need to apply. The Danish Tax Agency simply exempts the first portion of your earnings from income taxes. 

In 2022, beskæftigelsesfradraget was set at 10.65 percent of income with a maximum rebate of 44,800 kroner. 

How did the government agree to change the employment allowance in its coalition deal? 

In Responsibility for Denmark, the coalition agreement between the Social Democrats, the Liberals and the Moderate Party, the new government said it would set aside 5 billion kroner for tax reforms.

Of this, 4 billion kroner was earmarked for increasing the employment allowance, with a further 0.3 billion going towards increasing an additional employment allowance for single parents.

According to the public broadcaster DR, the expectation was that this would increase the standard employment  allowance to 12.75 percent up to a maximum rebate of 53,600 kroner. 

How might this be further increased, according to Børsen? 

According to a report in the Børsen newspaper, the government now plans to set aside a further 1.75 billion kroner for tax reforms, of which nearly half — about 800 million kroner — will go towards a further increase to the employment allowance. 

The Danish Chamber of Commerce earlier this month released an analysis in which it argued that by raising removing all limits on the rebate for single parents and raising the maximum rebate for everone else by 20,300 kroner, the government could increase the labour supply by 4,850 people, more than double the 1,500 envisaged in the government agreement. 

According to the Børsen, the government estimates that its new extended allowance will increase the labour supply by 5,150 people.  

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