D&G paid their taxes, prosecutor tells appeals court
Surprise statement after fashion pair's conviction25 March, 15:18
The pair were sentenced on June 19 to one year and eight months in jail after being convicted of evading taxes on almost one billion euros.
The two founders of the iconic fashion house were also ordered to pay compensation to Italy's tax authorities.
Milan prosecutors had said that the creators of the world-famous Dolce & Gabbana brand, with six others, evaded taxes for several years after setting up the front company Gado in Luxembourg.
"Gado was an artificial construction with the specific function of obtaining tax benefits," prosecutors said.
The designers appealed, and the court heard Tuesday that they "paid their taxes" and that Gado was "a legal operation".