Italian tax police have seized over $131 million from Amazon’s Italy-based logistical services unit as part of an investigation into alleged tax fraud and illegal labor practices. The Milan Prosecutor’s Office obtained a 94-page order, dated July 23, which claims that Amazon Italia Logistica Srl bypassed labor and tax laws to maintain competitive prices in the Italian market.
According to the order, prosecutors accuse Amazon’s logistical services arm of outsourcing labor to third parties in a manner that violates Italian labor laws. Additionally, they allege that the company failed to pay certain taxes and social security contributions. These allegations raise concerns about Amazon’s compliance with regulations and its treatment of workers.
In response to the investigation, an Amazon spokesperson denied any wrongdoing and stated that the company is willing to cooperate. They emphasized that Amazon complies with all applicable laws and expects its partners to do the same. The spokesperson also mentioned that Amazon has a Supplier Code of Conduct in place to ensure high standards are upheld.
Interestingly, on the same day that the order was released by the Milan Prosecutor’s Office, Amazon issued a statement about its operations in Italy. The statement did not address the allegations made against the company but instead focused on highlighting positive aspects of its presence in the country. This move could be seen as an attempt by Amazon to counteract the negative coverage it has been receiving in local press.
Amazon’s statement emphasized its commitment to job creation, contributions to Italy’s economic development, and worker safety measures. The company aims to employ around 19,000 people in permanent roles in Italy by the end of 2024, surpassing its previous employment target. It also highlighted its continuous investments in Italy and its programs for professional development and diversity, equity, and inclusion (DEI).
While Amazon tries to showcase its positive impact in Italy, the investigation into alleged tax fraud and illegal labor practices raises important questions about the company’s practices and corporate responsibility. It is crucial for authorities to thoroughly investigate these allegations and ensure that Amazon and its partners adhere to labor and tax laws.
This incident also highlights the need for stronger regulations and oversight to prevent large corporations from engaging in tax evasion and exploiting labor loopholes. Governments must enact measures that hold companies accountable for their actions and protect the rights and well-being of workers.
In conclusion, the seizure of funds from Amazon’s Italy-based logistical services unit due to allegations of tax fraud and illegal labor practices raises concerns about the company’s compliance with regulations. While Amazon denies any wrongdoing, it is important for authorities to thoroughly investigate these allegations. This incident underscores the need for stronger regulations and oversight to prevent such practices in the future and protect workers’ rights.
