​Dolce And Gabbana Tax Evasion: Convicted By Tax Court, $670k Fine​​

Domenico Dolce and Stefano Gabbana have been convicted of tax evasion in a Milan court for failing to declare $268 million through a Luxembourg company to authorities.

Dolce and Gabbana were given one year and eight months suspended jail sentence, but were ordered to pay a penalty of about $670,000 to tax authorities.

The court, however, acquitted them of misrepresenting income of $560 million each, even though the statute of limitations had expired on the charge.

The designers have denied the charges. Defense lawyer Massimo Dinoia pledged to appeal the ruling, 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.”

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.

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.