x Abu Dhabi, UAEThursday 27 July 2017

Designers Dolce and Gabbana convicted over €200 million tax evasion

The men were found guilty of failing to declare €200 million (Dh984m) through a Luxembourg company to authorities and given a one year and eight months suspended jail sentence.

MILAN // A Milan court yesterday convicted the designers Domenico Dolce and Stefano Gabbana of tax evasion.

The men were found guilty of failing to declare €200 million (Dh984m) through a Luxembourg company to authorities and given a one year and eight months suspended jail sentence.

They were ordered to pay a penalty of €500,000 to tax authorities.

The court, however, acquitted them of misrepresenting income of €416m each, even though the statute of limitations had expired on the charge.

The designers have denied the charges. The defence lawyer Massimo Dinoia said he would appeal the ruling, adding the fact the court issued an acquittal on a charge that had expired, instead of just letting it fall to the statute of limitations, "means the proof of their innocence is evident".

Two years ago, a judge threw out a tax evasion and fraud case against the pair, whose label Dolce&Gabbana is a Milan fashion mainstay. Italy's high court later ruled the designers could be prosecuted for tax evasion, though not for fraud.

Three other defendants, including two managers, were also convicted in the scheme and given suspended sentences of one year and four months. A sixth defendant was acquitted.