Amazon tax evasion in Italy

Milan prosecutors are investigating Amazon for suspected tax evasion related to its Italian unit, Amazon Italia Transport, as part of an inquiry that began in 2021. This investigation follows a separate incident where tax police seized approximately 121 million euros from another Amazon unit due to alleged tax fraud and illegal labor practices. The current probe focuses on value-added taxes and customs duties concerning the trading of goods both within Italy and internationally. Prosecutors allege that Amazon's logistic services unit dodged labor and tax laws by using cooperatives to supply workers, thereby maintaining competitive pricing. The potential amount of tax evasion has not yet been quantified, and Amazon has stated it complies with applicable laws and is cooperating with authorities. Italy's tax police have conducted similar investigations into other large companies, including DHL and UPS.