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MILAN, Italy — An Italian appeals court has upheld the decision of a lower court, ruling Domenico Dolce and Stefano Gabbana of fashion label Dolce & Gabbana guilty of tax evasion. Dolce, Gabbana and accountant Luciano Patellito were sentenced to one year and six months of jail time. They will not have to serve time in custody, however, as the sentences handed down are below the two-year minimum sentence requiring actual jail time.
In 2008, the two designers were charged with tax evasion relating to the 2004 sale of their brands Dolce & Gabbana and diffusion label D&G to the designers’ Luxembourg-based holding company Gado Srl. The Italian authorities called the sale a move to avoid paying higher corporate taxes in Italy. Dolce and Gabbana have consistently denied the charges.
Dolce and Gabbana’s lawyers have said they would appeal the decision to Italy’s highest court.