Dolce and Gabbana sentenced

Italian fashion designers Domenico Dolce and Stefano Gabbana (of Dolce and Gabbana) have each been sentenced to 18-month jail terms for tax evasion charges.

The sentences were awarded despite the prosecution arguing for the pair to be acquitted.

The Italian appeals court upheld a verdict issued last June against the pair on charges of using a Luxembourg holding company known as Gado to avoid paying taxes.

They were said to have avoided paying taxes on royalties to the tune of around 1billion Euros (£820million).

Yesterday (Thursday) the Italian court gave the pair suspended sentences of 18 months in jail.

The fashion design duo, who have always denied wrong-doing, are expected to appeal the decision.

Last year the Milan prosecutor asked the court to clear the pair, who, in a protest against the accusations, closed their Milan stores.

The Italian courts also imposed a fine of up to 10 million Euros over avoidance of the payments in Italy, where corporate taxes are amongst the highest in Europe.

The case against the pair stems from an investigation that began back in 2008 when Italian tax authorities stepped up their fight against tax evasion.