Saturday 1 November 2014

Dolce&Gabbana guilty of tax evasion

Published 19/06/2013 | 16:33

Stefano Gabbana (left) and Domenico Dolce have been convicted of tax evasion in Italy

Designers Domenico Dolce and Stefano Gabbana have been found guilty of massive tax evasion in Italy.

The pair were convicted in a Milan court of failing to declare 1 billion euros (£860m) in income tax to authorities. The court sentenced them both to 20 months in jail.

Prosecutors said that the pair had evaded taxes on income of 416 million euros each and 200 million euros through a Luxembourg-based company. The statute of limitations ran out on a charge of misrepresenting income.

The designers denied the charges.

Two years ago a judge threw out a tax evasion and fraud case against the pair, whose label Dolce&Gabbana is a Milan fashion mainstay. Italy's high court later ruled the designers could be prosecuted for tax evasion, though not for fraud.

Defence lawyer Massimo Dinoia pledged to appeal against the conviction, saying the fact the court issued an acquittal on a charge that had expired, instead of just letting it fall to the statute of limitations, "means the proof of their innocence is evident."

Three other defendants, including two managers, were also convicted in the scheme and given suspended sentences of one year and four months. A sixth defendant was acquitted.

Press Association

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