Fashion design duo Domenico Dolce and Stefano Gabbana were on Wednesday
handed a suspended prison sentence of one year and eight months for
hiding hundreds of millions of euros from the tax authorities.
The
designers, who are nearly as famous as the stars they dress, were not
present in court in Milan and have denied the charges. Given the
complexity and length of the appeals process, they are unlikely to spend
any time in jail.
Public prosecutor Gaetano Ruta had asked for two and a half years. The judge gave them a suspended sentence.
A company spokesman declined to make an immediate comment.
The
success of Dolce and Gabbana's sexy corset dresses and sharply tailored
suits favored by celebrities like Kylie Minogue, Kate Moss and Bryan
Ferry have earned them a glamorous lifestyle.
They hosted friend
and client Madonna for her birthday in 2009 at their villa perched above
the chic boating resort of Portofino.
The case dates back to an
investigation that began in 2008, when authorities unleashed a tax
avoidance crackdown as the financial crisis began to bite. But the probe
that ensnared the two designers is one of the few high-profile cases to
come to trial so far.
The judge on Wednesday ruled that the pair
sold their brand to Luxembourg-based holding company Gado in 2004 to
avoid declaring taxes on royalties of about 1 billion euros ($1.3
billion).
The pair's flamboyant designs are inspired by the
sultry southern Italian island of Sicily, where Dolce was born in 1958.
He met Gabbana, now 50, in the latter's home town of Milan, where they
showed their first collection in 1985. The brand took hold
internationally in the 1990s and global revenues hit just under 1.5
billion euros in 2011.
The pair have always said they are innocent.
"Everyone knows that we haven't done anything," Gabbana tweeted in June 2012 after the trial was ordered.
But
Gabbana's only reaction so far on Wednesday was to tweet a close up
photograph of the branch of a colorful citrus tree, just seconds after
the verdict.
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Dolce & Gabbana Sentenced To Prison For Tax Evasion
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