Amazon Italia Transport, a logistics provider for e-commerce giant Amazon, has come under fire from Italian authorities for alleged tax fraud and illegal labor practices. Prosecutors have seized approximately 121 million euros ($131 million) as part of an ongoing investigation.Amazon Italia Transport, a logistics provider for e-commerce giant Amazon, has come under fire from Italian authorities for alleged tax fraud and illegal labor practices. Prosecutors have seized approximately 121 million euros ($131 million) as part of an ongoing investigation. The probe, detailed in a 94-page ruling by the Milan Public Prosecutor’s Office, accuses Amazon Italia Transport of using a system of cooperatives and limited liability companies to provide workers while avoiding value-added tax (VAT) and reducing social security contributions. According to prosecutors, such a system allowed Amazon to remain competitive in the Italian market by keeping its service prices low. However, Amazon maintains that it adheres to all applicable laws and regulations in its regions of operation and requires its partners to do the same. The investigation is part of a broader crackdown on major companies in Italy, including international delivery firms DHL and UPS, German logistics company DB Schenker, and Italian supermarket chain Esselunga. These companies have also faced similar allegations of tax evasion and labor violations.
Prosecutors say such a system allowed the Amazon unit to keep the prices of its services competitive in the marketplace.
Italian tax police have seized about 121 million euros ($131 million) from an Italian branch of e-commerce giant Amazon as part of an investigation into alleged tax fraud and illegal labor practices, according to prosecutors’ documents released Tuesday.
In a 94-page ruling, the Milan Public Prosecutor’s Office accuses logistics provider Amazon Italia Transport of circumventing labor and tax laws by using cooperatives or limited liability companies that provided workers, while avoiding VAT and reducing social security benefits.
According to prosecutors, this system allowed Amazon to keep the prices of its services competitive on the Italian market.
Amazon said it was complying with necessary rules.
“We comply with all applicable laws and regulations in the regions where we operate, and require companies that work with us to do the same… We continue to assist the relevant authorities with their investigations,” Amazon said in a statement.
Prosecutors say similar investigations have targeted other major companies in recent years, including global delivery companies DHL and UPS, German logistics company DB Schenker and Italian supermarket chain Esselunga.
