Dolce and Gabbana Sentenced to 20 Months in Jail for Tax Evasion
Famous designer duo Domenico Dolce and Stefano Gabbana have been found guilty Wednesday, June 19 of evading taxes in their home country, Italy. They were sentenced to 20 months in prison and were ordered to pay heavy fines by a Milan court.
Dolce & Gabbana were accused of selling their company to a Luxembourg-based firm, Gado, in 2004 to avoid declaring taxes on approximately 1 billion euros ($1.3 billion). Prosecutors claimed Gado is a shell company that made no administrative or financial decisions.
The designers whose clients include Madonna and Kate Moss among other high-profile celebrities had initially been acquitted of tax fraud in 2011 when a judge ruled there was not enough evidence to indict them, but the highest Italian court overturned the ruling.
Prosecutors wanted Dolce & Gabbana to spend two and a half year in jail for the tax evasion, but the judge granted them only 20 months in prison. In addition, the designers were ordered to pay 500,000 euros as a first installment of a fine that could reach millions of euros.
D&G's lawyers said they were "frankly stunned" by the verdict and were "certain that it will be overturned on appeal." One of the lawyers, Massimo Dinoia, said as quoted by Reuters, "We will read the reasons for the verdict, and we will appeal."
- Kylie Jenner and Tyga Make Out in New Alexander Wang Promo
- Brad Pitt Cancels Red Carpet Appearance Due to 'Family Situation'
- Solange Announces New Album 'A Seat at the Table', Reveals Tracklist
- Viola Davis to Lead All-Female Heist Movie From '12 Years a Slave' Director Steve McQueen
- Nick Jonas Gets Cozy With Bikini Hottie in Hawaii
- Brad Pitt Bails on Movie Screening to Focus on 'Family Situation' Amid Angelina Jolie Divorce
- 'The Strain' Renewed for Fourth and Final Season
- Justin Theroux Slams Media for Thrusting Jennifer Aniston Into Brangelina's Divorce