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Dolce & Gabbana founders cleared of tax evasion

Fashion designers Domenico Dolce and Stefano Gabbana have been cleared of hiding hundreds of millions of euros from Italian tax authorities by the country's top court.

The Italian pair appealed the suspended 18-month jail sentence that had been upheld earlier this year for tax evasion charges.

Italian designers Domenico Dolce, right, and Stefano Gabbana, left, had faced jail for an alleged plan to avoid paying a higher rate of tax. Credit: Carlos Barria/Reuters

The star designers were accused of using a Luxembourg holding company, Gado, to avoid paying taxes on royalties of about 1 billion euros.

Today's verdict, reported by Reuters, overturns the guilty verdict first delivered in 2013 and upheld by an appeals court in Milan in April.