An Italian court has sentenced fashion designers Domenico Dolce and Stefano Gabbana to 1 year and 8 months in prison for tax evasion.
The pair have denied allegations that they evaded more than 400 million euros in taxes when they sold brands D&G and Dolce & Gabbana to a holding company they established in Luxembourg. This move allowed Dolce and Gabbana to pay a lower tax rate than they would have in Italy.
Italy has a very complex court process. A court initially cleared the pair of the charges, but a higher appeals court overturned that decision in 2011 and ordered the case back to trial. A Milan court ordered Dolce and Gabbana to pay a 343 million-euro fine earlier this year.
Reuters points out that because the appeals process still isn’t over, Dolce and Gabbana might never actually spend any time in prison despite Wednesday’s sentence.
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