The Italian fashion stars Dominico Dolce and Stefano Gabbana, the duo who created their namesake luxury label, were found guilty Wednesday by a court in Milan, Italy, of failing to pay taxes on €200 million ($268 million) in income.
The duo received a suspended jail sentence of 20 months and were ordered to pay €500,00 ($670,000) in penalties to Italy’s tax authorities. However, the court acquitted them of misrepresenting earnings totaling €416 million each ($560 million), despite the fact the statute of limitations had expired on the charge.
Per Reuters, the case stemmed from the fact that Dolce and Gabbana sold their brand to a Luxembourg-based company in 2004 to avoid having to pay dues to the country, which has been hard up for cash thanks to the ongoing economic crisis in the Euro zone.
Dolce, 54, and Gabbana, 50, have maintained their innocence throughout a process that began when Italy’s Tax Commission initiated a probe of the 2004 sale, accusing them of defrauding the state.
Read more at Eonline