Amazon Shells Out 180 Million Euros to Settle Tax Fraud in Italy
On Friday, sources indicated that an investigation into alleged tax fraud and unlawful labor practices had been concluded. As part of this conclusion, the Italian business of the e-commerce giant Amazon has compensated employees and ceased operation of a delivery staff surveillance system. During the month of July in 2024, the logistics services division of the organization was accused of circumventing both labor and tax restrictions by employing cooperatives or limited liability organizations to staff its business. This allowed the organization to avoid paying value-added tax and to reduce the amount it contributed to social security. At that time, 121 million euros were confiscated from the unit by prosecutors in Milan.
The organization has now paid about 180 million euros (which is equivalent to $210 million) to the Italian tax agency. This action is consistent with the actions of more than 30 other businesses that have settled in the past two years in order to reach a resolution in comparable investigations. According to a judicial document, the total amount of money that has been paid out is more than one billion euros. “We have clarified our position with the relevant authorities, who have recognized the high standards of our collaboration model with delivery partners,” Amazon noted in its announcement.
“Our engagement with Italian institutions and other stakeholders has improved compliance across the entire industry,” the business noted in its announcement. An inquiry has been initiated by the office of the Milan public prosecutor against a number of significant corporations, including the Italian branches of FedEx, DHL, and UPS, as well as the Italian grocery chain Esselunga, in order to examine their recruiting procedures.
