Italian fashion designers Domenico Dolce and Stefano Gabbana have been cleared of tax evasion charges by Italy’s Court of Cassation.
The court acquitted the pair citing lack of case with regard to charges that they had used holding company Gado in Luxembourg to avoid paying taxes on royalties amounting to €1 billion, an amount later reduced.
An appeals court gave a suspended sentence of 18 months’ jail to the designers in April, which a prosecutor in Rome asked the court to uphold.
The designers have always denied the charges, and responded to news of the acquittal by tweeting, “We knew it!!! We are honest people!”
In 2013 Milan official Franco D’Alfonso was quoted by Il Giornale as saying that while fashion is highly important to local business, “we do not need tax-evaders to represent us,” leading to a three-day closure of Dolce & Gabbana stores in Milan “for indignation.”