Italian fashion designers Domenico Dolce and Stefano Gabbana have been convicted to 19 months in jail for fiscal fraud. The designers will undoubtedly appeal, so they will not have to go to jail just yet.
2.5 years demanded
All in all the mythical fashion duo gets off quite well, as the prosecutor had demanded 2.5 years. Five other employees of the fashion label have been convicted to jail time.
According to the judge in Italy the designers sold their brand to a company in Luxembourg in 2004 they had founded themselves. This way they could benefit from the better tax system in Luxembourg, causing the Italian treasury to lose out hundreds of millions or maybe even a billion euro. The two designers, who were not present at the trail, have always denied these accusations.
The company Dolce & Gabbana was founded in 1985 and has more than 3,000 employees and is sold in 250 shops in over 40 countries. The fashion label, which had sales of about one billion euro in 2011/2012 and has celebrities such as Madonna and Beyoncé among its fans, earlier received a fine of 343.4 million euro, also for tax evasion.