Dolce and Gabbana sentenced to jail
Dolce and Gabbana (D&G) were accused of selling their company to a Luxembourg-based firm, Gado, in 2004 to avoid declaring tax on USD 1.3 billion.
Prosecutors claimed Gado is a shell company that made no administrative or financial decisions, reported Ace Showbiz.
The designers whose clients include Madonna and Kate Moss among other high-profile celebrities had initially been acquitted of tax fraud in 2011 when a judge ruled there was not enough evidence to indict them, but the highest Italian court overturned the ruling.
Prosecutors wanted Dolce and Gabbana to spend two and a half year in jail for the tax evasion, but the judge granted them only 20 months in prison. The designers were also ordered to pay heavy fines.