1. ITV Report

Dolce and Gabbana convicted of tax evasion

Domenico Dolce and Stefano Gabbana have been sentenced to one year and eight months in prison. Photo:

An Italian court has sentenced fashion duo Domenico Dolce and Stefano Gabbana to one year and eight months in prison after being convicted of hiding hundreds of millions of Euros from the tax authorities.

The case against Dolce and Gabbana dates back to an investigation that began in 2008.

The judge ruled the pair sold their brand to Luxembourg-based holding company Gado in 2004 to avoid declaring taxes on royalties of about one billion Euros.

The designers are one of the few high-profile cases to have come to trial since Italian authorities launched a tax avoidance crackdown.

Given the complexity and length of the appeals process, the pair are unlikely to spend any time in jail, according to the news agency Reuters.

ITV News reporter Lewis Vaughan-Jones reports: