The entrepreneur was arrested at his Florence home by Finance Police on Wednesday morning, Corriere della Sera reported.
He has been charged with fraudulent tax evasion amounting to €400,000 and fraudulent bankruptcy of €800,000.
The entrepreneur’s company Esperienza, which created the “To be G” handbag range, filed for bankruptcy in 2013. Gucci is accused of then diverting €800,000 of assets away from the company.
A second businessman in the company is also being investigated.
According to investigators, the two entrepreneurs transferred assets to a new company based in Perugia, also run by them, after accumulating debts of €400,000 with the tax authorities.
Quoted in Corriere della Sera, the investigating judge said Gucci was “adept at exploiting the availability of unscrupulous individuals to pursue the aims he has set himself.
“We’re not in front of one of the classic situations of difficulty of the companies that fail as a result of the economic crisis in the sector,” he said.