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Dolce and Gabbana sentenced to jail for tax evasion | Dolce and Gabbana sentenced to jail for tax evasion |
(about 17 hours later) | |
Italian fashion designers Domenico Dolce and Stefano Gabbana have been sentenced to jail in Italy for one year and eight months for tax evasion. | Italian fashion designers Domenico Dolce and Stefano Gabbana have been sentenced to jail in Italy for one year and eight months for tax evasion. |
They were accused of hiding millions of euros from Italian tax authorities. | They were accused of hiding millions of euros from Italian tax authorities. |
The pair, whose customers have included Madonna, Kate Moss and Kylie Minogue, were not at the trial, deny the charges and have appealed. | The pair, whose customers have included Madonna, Kate Moss and Kylie Minogue, were not at the trial, deny the charges and have appealed. |
Dolce and Gabbana have not commented on their sentences, which have been suspended pending their appeal. | Dolce and Gabbana have not commented on their sentences, which have been suspended pending their appeal. |
The investigation by the Italian authorities began around six years ago as part of a government plan to crack down on tax avoidance. | The investigation by the Italian authorities began around six years ago as part of a government plan to crack down on tax avoidance. |
At the hearing on Wednesday, the judge ruled that the designers moved their brand to a Luxembourg-based holding company Gado - a play on their two surnames - in 2004. | |
He said they had done this to avoid declaring taxes on royalties of around 1 billion euros (£833m; $1.3bn). | He said they had done this to avoid declaring taxes on royalties of around 1 billion euros (£833m; $1.3bn). |
Prosecutors alleged they sold the business for well below actual market value. | Prosecutors alleged they sold the business for well below actual market value. |
They were initially cleared of the charges at a previous trial in April 2011 but Italy's highest court overturned that ruling, ordering that the case should be sent back. | They were initially cleared of the charges at a previous trial in April 2011 but Italy's highest court overturned that ruling, ordering that the case should be sent back. |