[Italy] Amazon pays €180 million to end tax and labour probe

In Italy, Amazon’s logistics unit has paid compensation and scrapped a monitoring system for delivery staff, ending a probe into alleged tax fraud and illegal labour practices, Yahoo reports. 

News of the ⁠settlement was first reported by Il Sole 24 Ore, and sources with knowledge of the matter confirmed it.

In July 2024, Amazon's logistics services unit was reportedly accused of using cooperatives or limited liability companies that supplied it with ⁠workers to work around labour and tax laws, avoiding VAT tax and reducing social security payments.

Milan prosecutors seized €121 million from the logistics unit at that time.

It has now paid around €180 million ($210 million) to the Italian tax agency, in common with 30 other companies that have, in the past two years, reached settlements to close similar investigations.

According to a judicial document, seen by Reuters, the amount paid now totals more than €1 billion.

In a statement, Amazon said, "We have clarified our position with the relevant authorities, who have recognised the high standards of our collaboration model with delivery partners.

"Our engagement with Italian institutions and other stakeholders has improved compliance across the entire industry."

The Milan prosecutors' office has reportedly investigated the hiring practices of several large businesses, including Italian units of DHL, FedEx and UPS, and Italian supermarket chain Esselunga.

Source: Yahoo

(Quotes via original reporting)

In Italy, Amazon’s logistics unit has paid compensation and scrapped a monitoring system for delivery staff, ending a probe into alleged tax fraud and illegal labour practices, Yahoo reports. 

News of the ⁠settlement was first reported by Il Sole 24 Ore, and sources with knowledge of the matter confirmed it.

In July 2024, Amazon's logistics services unit was reportedly accused of using cooperatives or limited liability companies that supplied it with ⁠workers to work around labour and tax laws, avoiding VAT tax and reducing social security payments.

Milan prosecutors seized €121 million from the logistics unit at that time.

It has now paid around €180 million ($210 million) to the Italian tax agency, in common with 30 other companies that have, in the past two years, reached settlements to close similar investigations.

According to a judicial document, seen by Reuters, the amount paid now totals more than €1 billion.

In a statement, Amazon said, "We have clarified our position with the relevant authorities, who have recognised the high standards of our collaboration model with delivery partners.

"Our engagement with Italian institutions and other stakeholders has improved compliance across the entire industry."

The Milan prosecutors' office has reportedly investigated the hiring practices of several large businesses, including Italian units of DHL, FedEx and UPS, and Italian supermarket chain Esselunga.

Source: Yahoo

(Quotes via original reporting)