Advertisement
Advertisement
Fashion icons Stefano Gabbana (left) and Domenico Dolce. Photo: Reuters

Italian court quashes Dolce and Gabbana fraud convictions

Italy's highest court has acquitted Domenico Dolce and Stefano Gabbana of tax evasion in a case that created such public acrimony that the designers closed their Milan stores in protest for several days last year.

AP

Italy's highest court has acquitted Domenico Dolce and Stefano Gabbana of tax evasion in a case that created such public acrimony that the designers closed their Milan stores in protest for several days last year.

Rome's Court of Cassation in Rome overturned two lower court convictions, ruling that the designers committed no crime. It also acquitted the designers' tax accountant, two managers and Dolce's brother, bringing to an end a seven-year court battle.

"We have always been honest and we are extremely proud of this recognition by the Italian Court of Justice. Viva l'Italia," Dolce and Gabbana said.

Thei lawyer Massino Dinoia called it "a resounding victory".

Prosecutors had argued that a Luxembourg company that owned the designers' trademark had been set up with the intent of evading Italian taxes on income of €200 million (HK$1.96 billion) . The acquittal would appear to dismiss that conclusion, but Dinoia said court's motives won't be clear until it releases its reasoning, due within 90 days.

The case sparked a row with a Milan city official who, after their lower court conviction, said tax dodgers should not be permitted use of city spaces.

The designers protested by closing their Milan stores for three days.

Experts say the corporate structure employed by the designers, selling the trademark to a Luxembourg-based company that then licensed the rights back, was a frequent practice that has come out of vogue as legislation and tax rules change.

This article appeared in the South China Morning Post print edition as: Dolce and Gabbana acquitted of tax evasion
Post