Italian prosecutors in Milan have opened a second investigation into Amazon for suspected tax evasion. This is separate from the recent seizure of €121 million from another Amazon unit due to allegations of tax fraud and illegal labor practices.
The Second Investigation is new investigation is unrelated to the previous one and focuses on potential tax evasion related to trading goods within Italy and internationally.
The investigation is specifically looking at value-added taxes (VAT) and customs duties. This second investigation began in 2021, triggered by routine checks by tax police in an area north of Milan.
Ongoing Investigation: The size of the potential tax evasion has not yet been determined as the investigation is still ongoing.
Amazon has not yet commented on the new investigation. Italy has been actively scrutinizing the tax practices of large multinational corporations.
Italian financial police recently seized €121 million (approximately $131 million) from Amazon Italia Transport, a local unit of Amazon.com, Inc. This action was taken as part of an investigation into alleged tax fraud and illegal labor practices.
The Milan Prosecutors’ Office has accused Amazon Italia Transport of relying on cooperatives and limited liability companies to supply workers while avoiding VAT tax duties and reducing social security payments.
This seizure is separate from another ongoing investigation into Amazon’s tax practices in Italy, focusing on potential tax evasion related to trading goods within Italy and internationally.