Dolce and Gabbana sentenced for tax evasion

On April 30, Italian Court of Appeal sentenced fashion designers Domenico Dolce and Stefano Gabbana to 18 months suspended imprisonment for tax evasion.

According to the investigation, Italian designers received a year and a half sentences each, on charges of avoiding paying taxes on royalties of about 1billion euros.

Dolce and Gabbana were sentenced in first instance last June, and now the Court upheld the verdict.

“I am speechless. We are all shocked. The judgement is inexplicable and we will appeal. The prosecutor himself asked for them to be cleared,” lawyer Massimo Dinoia said.

“Luxury is one of the few sectors to have done well in recent years,” a tax specialist from Grant Thornton in Milan said. “It is easier to go and ask for money where there is money as opposed to going to a troubled sector.”