Fashion designers Domenico Dolce and Stefano Gabbana have been cleared of tax evasion following a successful appeal to Italy’s top court, and will no longer face the possibility of jail sentences
The Italian supreme court of justice has annulled the pair’s fraud convictions and 18-month jail terms, stating that the prosecution case was ‘unfounded’.
The two designers had been found guilty of tax evasion in June 2013 over accusations that they had transferred control of their brands to a shell company in Luxembourg in 2004 and 2005 to avoid paying Italian taxes.
Dolce & Gabbana stores in Milan closed for several days in protest against the sentences.
In April this year an Italian appeals court upheld the verdict, saying Dolce and Gabbana had evaded taxes totalling €200m ($277m). This latest ruling overturns that decision and is final.
In a statement, Dolce and Gabbana said: ‘We have always been honest and we are extremely proud of this recognition by the Italian court of justice. Viva l’Italia.’
