Milan prosecutors have wrapped up their probe into fashion group Gucci’s alleged tax evasion of around £887 million, paving the way for a formal request for a trial, a judicial source said last Tuesday.

Unless the parties agree on a settlement within the next 20 days, or unless new evidence is found, the case will be sent to court. The prosecutors suspect Gucci, which is part of French luxury group Kering, may have paid taxes on profits generated by sales in Italy in another country with a more favourable tax regime.

It is alleged that Gucci owes the Italian tax authorities around €1 billion for revenues booked in the years between 2010 and 2016.

Gucci Chief Executive Marco Bizzarri and former CEO Patrizio Di Marco are under investigation in the case, the source added.