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Italian Unit of Amazon Faces Second Probe for Suspected Tax Evasion

By  |  July 28, 2024
Amazon

Milan prosecutors have launched an investigation into an Italian unit of Amazon for suspected tax evasion, according to Reuters. This probe is separate from a recent high-profile case involving a substantial asset seizure from another of Amazon’s Italian subsidiaries.

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    Earlier this week, Italy’s tax police seized approximately 121 million euros ($131 million) from a different unit of the U.S. e-commerce giant. This action is part of a broader investigation into alleged tax fraud and illegal labor practices, as detailed in prosecutors’ documents obtained by Reuters.

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    The current tax evasion inquiry, which commenced in 2021, was initiated following routine checks by tax police in the vicinity north of Milan. Sources familiar with the matter indicated that the investigation scrutinizes compliance with tax regulations concerning the trading of goods within Italy and internationally, with a specific focus on value-added taxes (VAT) and customs duties.

    Related: Italy Seizes €121 Million from Amazon Unit Over Alleged Tax Fraud

    At this stage, the magnitude of the suspected tax evasion remains undetermined. However, the investigation has prompted Italy’s tax authorities and tax police in Monza, a city just north of Milan, to conduct extensive examinations of Amazon’s accounts in Italy over the past several years.

    Amazon has not yet commented on the ongoing investigations. This scrutiny comes as part of a broader effort by Italian authorities to clamp down on tax evasion and ensure compliance with labor laws, especially among multinational corporations operating within the country.
    Source: Reuters