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Dolce and Gabbana convicted of tax fraud; face possible jail time
It looks like the glamour stops here for fashion duo Domenico Dolce and Stefano Gabbana, who have been sentenced to 1 year and 4 months of prison time plus steep fines for tax evasion.
A Milan court convicted the owners of Dolce & Gabbana of tax fraud after the designers were accused of transferring control of their funds to a company in Luxembourg in 2004 to avoid paying Italian taxes.
Dolce and Gabbana set up the company "Gado" (a combination of their initials) in Luxembourg to disguise their attempt at tax fraud.
The designers denied the charges since they were first accused in 2009. Two years ago, an Italian judge dismissed the charges they faced, but Italy’s higher court re-opened the case and ruled against the designers.
So being some of the biggest names in fashion and owning nearly 250 stores worldwide won't get you out of a conviction, but chances are the designers won't actually spend time behind bars, according to Women's Wear Daily.
"There is little chance the designers and the other defendants will serve any jail time because the sentences are below the two-year minimum generally required in Italy to do so," WWD reports.
Tags: Dolce & Gabbana