A Milan prosecutor is seeking a two year and six month sentence against the designing duo Dolce and Stefano Gabbana for allegedly failing to declare 1 billion euros ($1.3 billion) in income, to tax authorities.
Prosecutor Gaetano Ruta told a court that the pair had evaded taxes on 416 million euros each and 200 million through a Luxembourg-based company, while the designers deny the charges. Expecting a verdict later this month.
A judge two years ago threw out a tax evasion and fraud case against the pair, whose label Dolce & Gabbana is a mainstay of Milan fashion. Italy’s high court later ruled the designers could be prosecuted for tax evasion, though not for fraud.
