Designers Dolce & Gabbana sentenced to prison for tax evasion | News


Designers Domenico Dolce and Stefano Gabbana – more commonly known as Dolce & Gabbana – have been sentenced to 20 months each in jail in Italy for tax evasion which reportedly saw them hide profits ammounting to 1 billion euros (£833m; $1.3bn).

The fashion house came under scrutiny as bigger crackdowns came on tax evasion, and an investigation saw the designers move their brand assets in 2004 to a Luxembourg-based holding company named Gado which is a play on their two surnames, thought to be done to avoid declaring taxes on the successful Italian fashion houses huge profits for a number of years.

The pair were cleared of charges in 2011 but the high court in Italy overturned the ruling subsequent to further investigation, and they were found guilty during a hearing that took place on Wednesday. The talented designers deny all claims and will be appealing the verdict with their sentences being suspended until the outcome of the appeal.