The American IRS caught Al Capone on tax evasion, and Italy's authorities are no less sharp nor are they afraid to go after two of Milan's most easily recognized names in the fashion industry. A heavy fine and a 20-month suspended prison sentence will hopefully temper Domenico Dolce and Stefano Gabbana's tax escapades, but if it doesn't, the fashion industry itself might feel the effects.

Fashion designers Domenico Dolce and Stefano Gabbana were handed a 20-month suspended prison sentence and a heavy fine on Wednesday for hiding hundreds of millions of euros from the Italian tax authorities.

The design duo, who are nearly as famous as the stars they dress, were not present in court in Milan and will lodge an appeal against their conviction on charges that they have always denied.

“We will read the reasons for the verdict, and we will appeal,” said Massimo di Noia, one of the pair’s defence lawyers after the hearing. (Read More)