Berlusconi was sentenced last October to four years. He was banned from public office for five for tax fraud in the purchase of broadcasting rights by his Mediaset television company.
However, due to a 2006 amnesty law, he will not have to serve three of the four years of his verdict.
The appeal court also upheld damages set at 10 million euros ($13 million) that Berlusconi and his co-defendants will have to pay to Italian tax authorities.
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