The tax evasion inquiry involving Gucci, part of the Kering luxury conglomerate, is reportedly leading to a formal request for a trial. According to reports by Reuters, which quote “a judicial source,” Milan prosecutors have wrapped up their investigation into alleged tax evasion of around €1 billion, paving the way for a formal request for a trial. In the absence of a settlement agreed by the parties or new evidence, the case will be sent to court. The Italian prosecutors suspect Gucci may have paid taxes in Switzerland on profits generated by sales in Italy, in order to benefit from a more favorable tax regime. According to the prosecutors, Gucci may allegedly owe Italy's tax authorities around €1 billion, related to revenues in the years between 2010 and 2016. Gucci's revenues booked through Luxury Goods International (LGI) - the company based in Cadempino, Switzerland that manages distribution and logistics - should be taxed in Italy and not in Switzerland, prosecutors allege. Based on Reuters' sources, Gucci's chief executive, Marco Bizzarri, and his predecessor, Patrizio Di Marco, are under investigation in the case.