Dolce and Gabbana Convicted of Tax Evasion in Italy

Get suspended prison sentence and 10 million euro fine

High-profile fashion designers Domenico Dolce and Stefano Gabbana were convicted of evading some hundreds of millions of euros in Italian taxes on Wednesday, receiving a 20-month suspended prison sentence and a fine of 10 million euros.

The designers, who have denied the charges throughout the saga, plan to appeal the conviction.

The case dates back to 2004, when the designer duo sold the Dolce and Gabbana brand to Luxembourg-based holding company Gado, allegedly to skirt taxes of some 1 billion euros of royalties (or $1.3 billion). The severest penalty available to the Italian court in the case was a five-year sentence; Public prosecutor Gaetano Ruta had asked the court for a two-and-a-half year prison term, Reuters reported.