It was confirmed in the early hours of Thursday morning that Domenico Dolce & Stefano Gabbana, duo behind fashion powerhouse Dolce & Gabbana have been found guilty of tax evasion. The Italian appeals court has sentenced the designers to one year & six months in jail, along with accountant Luciano Patellito. Authorities have stated that the designers have hid millions of euros from the Italian Tax Authorities and that now they are to be fined up to 10 million euros in repayments.
It was only in 2008, that the duo were charged with tax evasion relating to the sale of their brands in 2004 to the designers’ Luxembourg-based holding company Gado Srl. Authorities state that the sale was intended to avoid paying higher corporate taxes in Italy. However, both designers & their lawyers have constantly denied the charges.