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Dolce & Gabbana tax convictions erased by Italy's top court

Domenico Dolce and Stefano Gabbana, founders of the high-end Italian fashion label Dolce & Gabbana, are no longer convicted tax evaders.

Stefano Gabbana and Domenico Dolce via ANSA Twitter feedItaly's highest court on Oct. 24 overturned two lower court convictions that the duo had participated in what Italian prosecutors called a "sophisticated tax fraud" scheme.

Dolce and Gabbana had been found guilty in April 2013 of using a Luxembourg holding company to avoid paying taxes of €200 million ($253.39 million U.S. as of this morning's exchange rate) on royalties for sales in 2004 and 2005.

That sizable chunk -- I'm going with the more than $253 million U.S. dollars, not the euros amount -- of now-not-due taxes also is this week's By the Numbers figure.

End of long tax battle: The ruling by Rome's Court of Cassation determined that the designers committed no crime. It also cleared the duo's tax accountant, two managers and Dolce's brother.

Following the ruling, which wraps up a seven-year court battle, Gabbana took to Twitter to celebrate, announcing, "Eravamo certi!!! Siamo delle persone oneste!!!" In case your Italian is rusty, that translates, "We knew it!!! We are honest people!"

The company's official response echoed that sentiment:

Dolce and Gabbana tax conviction overturned 102414 company statement

I suspect we'll also see this excitement reflected in the next line of D&G haute couture.

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