Italian tax police have seized more than $131 million from Amazon’s Italy-based logistical services unit as part of an investigation into alleged tax fraud and illegal labor practices, according to an order from the Milan Prosecutor’s Office obtained by Reuters and local media.
The 94-page order, dated July 23, alleges that Amazon Italia Logistica Srl circumvented labor and tax laws so as to keep the prices of its services competitive in the Italian market.
Prosecutors accuse Amazon’s logistical services arm of outsourcing labor to third parties in ways that ran afoul of Italian labor laws, while failing to pay certain taxes and social security contributions.
An Amazon spokesperson denied any wrongdoing in an emailed statement to The Epoch Times and said the company intends 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.”
Amazon’s statement, which made no mention of the allegations leveled against the company, highlighted job creation, contributions to Italy’s economic development, and worker safety measures.
“We’re committed to creating quality jobs and opportunities in Italy, and by the end of 2024 we expect to employ around 19,000 people in permanent roles,” Amazon’s PR team wrote in the statement, which highlighted the fact that the company’s current employment target is roughly 1,000 greater than it announced last year.
Highlighting “continuous investments” it Italy, Amazon said it contributes to the country’s economic development, offering job opportunities and programs for professional development, adding that it’s “very proud” of its commitment to diversity, equity, and inclusion (DEI).
