Milan prosecutor seeks jail time for designers Dolce and Gabbana in tax case

MILAN – A Milan prosecutor is seeking a two year and six month sentence against the designing duo Domenico Dolce and Stefano Gabbana for allegedly failing to declare 1 billion euros ($1.3 billion) in income to tax authorities.

Prosecutor Gaetano Ruta told a court during closing arguments Wednesday that the pair had evaded taxes on 416 million euros each and 200 million through a Luxembourg-based company. The statute of limitations ran out on a misrepresenting income charge.

The designers deny the charges. A verdict is expected later this month.

A judge two years ago threw out a tax evasion and fraud case against the pair, whose label Dolce&Gabbana is a mainstay of Milan fashion. Italy’s high court later ruled the designers could be prosecuted for tax evasion, though not for fraud.