From sharp, tailored suits to orange jumpsuits.
Storied designer duo Domenico Dolce and Stefano Gabbana were found guilty of tax evasion on one of two counts, a Milan court ruled Wednesday afternoon.
The designers were each sentenced to one year and eight months behind bars for failing to declare $268 million to authorities, a decision reached after a three hour-long jury deliberation. They were also ordered to cough up $670,000 to tax authorities. The designers were cleared of the second count which dealt with the tax rate paid and valuation of all D&G assets.
The dramatic ruling is the outcome of years of court battles, stemming from the label's 2004 sale of its D&G lines to a Gado Srl, a Luxembourg-based holding company that's comprised of the first two letters of the designers' names. The move was to avoid Italy's hefty taxes on royalties, amounting to about 1 billion euros (or $1.3 billion). Unrelenting prosecutor Gaetano Ruta demanded Dolce, Gabbana and Christiana Ruella - a board member of the fashion house - be sentenced to two and a half years in prison for evading taxes within Italy. In April, Italy's Tax Commission slapped the two with a whopping $440 million fine for tax evasion.