Domenico Dolce and Stefano Gabbana cleared in tax evasion case

Founders of the Dolce & Gabbana fashion house, Domenico Dolce and Stefano Gabbana, have been cleared by Italy’s top court of tax evasion.

Two lower Italian courts had found Domenico Dolce and Stefano Gabbana guilty of failing to declare millions of euros the company had earned through a subsidy based in Luxembourg.

In April, Domenico Dolce and Stefano Gabbana had been sentenced to a suspended 20-month jail term.

Domenico Dolce and Stefano Gabbana have always denied the charges.

In June 2013, they were convicted by a lower court for failing to file tax declarations for the Luxembourg company, Gado, which prosecutors alleged was set up to evade paying taxes in Italy.

Domenico Dolce and Stefano Gabbana denied the charges, and last year they briefly closed their Milan stores in protest.

The ruling by Italy’s top court is the final ruling on the subject.