Dolce & Gabbana Host Annual "Fabulous in Cannes" Bash, Face Tax Evasion Charges

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>> As this year's Cannes Film Festival wound down Friday, fashion fixtures were still going strong that afternoon — Carine Roitfeld pulled out her favorite floppy hat and pair of flats for the Amend Charity Luncheon at Hotel du Cap, Stefano Gabbana hosted Claudia Schiffer and Eva Herzigova on his yacht, and then they all convened that night for Dolce & Gabbana's annual "Fabulous in Cannes" bash at Le Baoli.

The party's guest list was reduced significantly from previous years, and the VIP room completely abolished, but sunglasses were handed out to guests because, Gabbana explained, “All the movie stars wore sunglasses in the Fifties, and at the end of the night when you’re drunk, it’s always better to have a pair.”

Carine, her son Vladimir Restoin-Roitfeld, Anna Dello Russo, Vogue Russia's editor Aliona Doletskaya, Eva, Claudia and a smattering of British it girls all hit the mirrored dance floor, while Natasha Poly reflected on her festival experience: "I'm having so much fun here in Cannes, I already forgot about the stresses of the campaign season. That felt like ages ago."

Host Domenico, too, was elated: "This has truly become our favorite little party of the year.  We come here and spend time on Stefano's yacht, see friends, and really leave happy and relaxed."  Unfortunately the relaxation didn't last long — as of Monday, the duo could be liable for more than a billion dollars in unpaid taxes, an Italian police spokeswoman confirmed.

The designers have already released a statement denying any wrongdoing — “It’s a paradox! Since when does one have to pay taxes on money one never actually collected? 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” — and vow to "strenuously defend ourselves to avoid being unjustly forced to pay for something that never existed in the first place.”