May 30, 2013
By Michael Kramer
Two world famous Italian fashion designers may soon be wearing prison grey.
Domenico Dolce and Stefano Gabbana are facing possible jail sentences for alleged tax evasion.
A Milan prosecutor says the pair should be jailed for two and a half years for alleged tax evasion.
Dolce and Gabbana are accused of not declaring taxes on royalties of about $1.35 billion in one of the few high-profile tax cases to go to court in Italy.
The designers deny the charges.
Prosecutors say the two sold the D&G and Dolce&Gabbana brands to a shell company set up in 2004 in Luxembourg, to avoid paying taxes in Italy – where corporate tax rates are some of the highest in the world.