Italian fashion designers Domenico Dolce and Stefano Gabbana, the men behind fashion power house, Dolce & Gabbana were today June 19th sentenced to one year and eight months in prison by an Italian court after being found guilty of tax evasion. They were also fined €500,000.
Italian authorities are accusing them of moving their brand to a Luxembourg-based holding company Gado - in 2004, so they could avoid declaring taxes on royalties of about 1 billion euros.
The Italian authorities have been investigating the designers for about six years now and they were actually cleared of tax evasion/fraud charges at a previous trial in April 2011 but Italy's highest court overturned that ruling, ordering that the case be sent back to trial.
Their sentences have been suspended pending their appeal.