Italy’s tax authorities have confiscated €121m ($131m) from e-commerce giant Amazon’s Italian unit over alleged tax and labour offences, Reuters has reported.
In a 94-page document, the Milan Prosecutors’ Office accused Amazon Italy Transport of evading tax and labour regulations by engaging cooperatives and limited liability companies to supply workers.
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These entities reportedly failed to fulfil value-added tax obligations and decreased social security contributions, allowing Amazon to offer competitive pricing within the Italian market.
In response, Amazon stated that it has maintained compliance with all relevant laws and regulations.
The company declared: “We comply with all applicable laws and regulations where we operate and require companies who work with us to do the same. We will continue to help the relevant authorities with their inquiries.”
The investigation into Amazon is part of a broader scrutiny of large firms in Italy.
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By GlobalDataSimilar probes have been launched against prominent delivery and logistics companies DHL, UPS and DB Schenker, and the Italian supermarket chain Esselunga.
In a separate announcement, Amazon projected an increase in its permanent workforce in Italy, expecting to employ 19,000 by the end of 2024.
This surpasses the previously announced target by 1,000 jobs.
The company highlighted the diversity of its Italian workforce, noting more than 100 nationalities, an average age of 34 and a corporate office staff comprising 53% women.
Amazon has also initiated projects to support the employment of individuals with disabilities.
One such initiative, in collaboration with the Italian National Agency for the Deaf, has resulted in the hiring of 140 deaf workers at Amazon’s logistics sites in Italy.
In February 2024, Italy’s competition watchdog the Autorità Garante della Concorrenza e del Mercato imposed €7m fines on Amazon and British American Tobacco for misleading advertising practices.
