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Famous international fashion designers Domenico Dolce and Stefano Gabbana have received a suspended prison sentence of 18 in jail. They are convicted of hiding hundred of millions of tax in Italy. These news came as a shock to many especially because of the reputation of D&G as a popular brand globally.
"I am speechless. We are all shocked. The judgment is inexplicable and we will appeal," said Massimo Dinoia, the lawyer for the designers.
Last year the pair closed the Milan shops where they sold clothes and accessories inspired by Dolce's native Sicily. This was after Italy's appeals court upheld a verdict charges of using Luxembourg holding company Gado to dodge paying taxes on royalties of more 1 billion euros ($1.38 billion). Last year's suspended 20 months jail sentence imposed a fine of up to 10 million euros.
Italy's fashion industry has come under spotlight after posting positive results over the last ten years. Even during the recession, the industry continued to do very well. This led to many companies trying to avoid tax on billions of ponds they made.
"Luxury is one of the few sectors to have done well in recent years," said one Italy's tax specialist.
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