Dominico Dolce and Stefano Gabbana found guilty of tax evasion

The highly anticipated verdict is in for the Dolce & Gabbana case tax evasion case. After a three hour jury meeting held today the judgment has been finally delivered, guilty. Ouch. Much speculation is being raised over the consequences that the decision will have on the designers’ Spring 2014 fashion show during Milan Fashion Week. Orange suits on the runway?

The Italian designers were charged with tax evasion and sentenced one year and eight months in prison, WWD reports. Dominico Dolce and Stefano Gabbana, who have fervently denied the accusations since the beginning, are expected to appeal the decision. Today’s ruling is the first of three legal proceedings, which will determine the final verdict of for case. Whether jail time is actually in the works for the designers and the members of their team is therefore yet to be determined.

If you’ve been following the news lately, you’ve probably been subjected to the drama surrounding this recent fashion scandal. If not, allow us to fill you in: This past May, the Italian design duo were accused of tax evasion in a particular business situation dating to 2004. The prosecution demanded that the pair and select members of their team (including their finance director and accountant) be subjected to prison sentences varying from 2 to 3 years.

The investigations, which began in 2008, were based on the charge of tax evasion amounting to $540 million relating the 2004 sale of the D&G label to a Luxembourg-based company. Italian authorities credit the choice of company to an attempt to evade Italy’s high corporate taxes. Despite a judge’s decision to dismiss the case in 2011, an appeal six months later led to the case being reopened.

The post Dominico Dolce and Stefano Gabbana found guilty of tax evasion appeared first on FASHION Magazine.