Italy Orders Seizure of $131 Million in Amazon Assets for Alleged Tax Fraud and Labor Violations

July 23, 2024 TruthUSA

Italian tax police have seized over $131 million from Amazon’s Italy-based logistical services unit amid an investigation into alleged tax fraud and illegal labor practices, as stated in an order from the Milan Prosecutor’s Office obtained by Reuters and local media.

The 94-page order, dated July 23, claims that Amazon Italia Logistica Srl violated labor and tax laws to maintain competitive service prices in the Italian market.

Prosecutors allege that Amazon’s logistical services branch outsourced labor to third parties in ways that breached Italian labor laws and evaded certain taxes and social security contributions.

An Amazon spokesperson denied any wrongdoing in a statement to The Epoch Times and expressed the company’s willingness to cooperate with the investigation.

“We comply with all applicable laws and regulations where we operate, and require companies who work with us to do the same,” the spokesperson said. “We hold ourselves and our partners to the highest standards, and have an established Supplier Code of Conduct that must be followed in order to work with us. We’ll continue to help the relevant authorities with their enquiries.”

On the same day the Milan Prosecutor’s Office released the order, Amazon issued a statement regarding its operations in Italy, seemingly aiming to emphasize the positive aspects of its presence in the country amidst negative media coverage.

Amazon’s statement, which did not address the allegations, emphasized job creation, contributions to Italy’s economic development, and worker safety measures.

“We’re dedicated to providing quality jobs and opportunities in Italy, aiming to employ approximately 19,000 people in permanent roles by the end of 2024,” Amazon’s PR team stated, noting that their current employment goal exceeds last year’s target by about 1,000.

Emphasizing its “continuous investments” in Italy, Amazon highlighted its contributions to the country’s economic progress, offering job opportunities and professional development programs, while expressing pride in its commitment to diversity, equity, and inclusion (DEI).

Reuters contributed to this report.

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