Amazon seized by Italy for alleged labor and tax violations worth $131 million

Around 121 million euros ($131 million) were taken from an Italian branch of Amazon, the largest online retailer in the world, as part of an investigation by Italy’s tax police into possible tax evasion and illegal labor practices.

As part of an investigation into suspected tax fraud and illegal labor practices, Italy’s tax police have seized approximately 121 million euros ($131 million) from an Italian branch of the world’s largest online retailer, Amazon (AMZN.O.) Prosecutors’ records revealed this on Tuesday. The logistic services unit Amazon Italia Transport is accused by the Milan Prosecutors’ Office of breaking labor and tax rules by using cooperatives or limited liability firms to provide workers while avoiding paying VAT tax levies and lowering social security payments. The accusation is made in a 94-page order.

According to the prosecution, this kind of arrangement allowed the Amazon division to maintain competitive service costs in the Italian market. Amazon claimed to have followed all applicable regulations. “Wherever we operate, we abide by all relevant rules and regulations, and we want that businesses that cooperate with us do the same…We’ll keep assisting the appropriate authorities in their investigations,” an Amazon statement added.

Prosecutors claimed that similar investigations have recently focused on other major corporations, such as the international delivery companies DHL and UPS (UPS.N.), the German logistics company DB Schenker, and the Italian grocery chain Esselunga.

Also read: Workruit’s end-to-end recruitment platform represents a shift from traditional recruitment methods by integrating advanced technology, says Mr. Manikanth Challa, Founder & CEO, Workruit

Do Follow: CIO News LinkedIn Account | CIO News Facebook | CIO News Youtube | CIO News Twitter 

About us:

CIO News is the premier platform dedicated to delivering the latest news, updates, and insights from the CIO industry. As a trusted source in the technology and IT sector, we provide a comprehensive resource for executives and professionals seeking to stay informed and ahead of the curve. With a focus on cutting-edge developments and trends, CIO News serves as your go-to destination for staying abreast of the rapidly evolving landscape of technology and IT. Founded in June 2020, CIO News has rapidly evolved with ambitious growth plans to expand globally, targeting markets in the Middle East & Africa, ASEAN, USA, and the UK.

CIO News is a proprietary of Mercadeo Multiventures Pvt Ltd.