Excerpt from yahoo finance Article, Published on July 24, 2024.
Italy’s tax authorities have confiscated €121m ($131m) from Amazon’s Italian unit over alleged tax and labor offences, highlighting Amazon non compliance. In a 94-page document, the Milan Prosecutors’ Office accused Amazon Italy Transport of evading tax and labor regulations by using cooperatives and limited liability companies to supply workers. These entities reportedly failed to meet value-added tax obligations and reduced social security contributions, allowing Amazon to offer competitive pricing in Italy. Amazon responded, stating it complies with all laws and regulations, and it will cooperate with authorities.
The investigation into Amazon is part of a broader scrutiny of large firms in Italy. Similar probes target DHL, UPS, DB Schenker, and supermarket chain Esselunga. In a separate announcement, Amazon projected an increase in its permanent workforce in Italy, expecting to employ 19,000 by the end of 2024, surpassing the previously announced target by 1,000 jobs. The company highlighted the diversity of its workforce, noting more than 100 nationalities, an average age of 34, and a corporate office staff comprising 53% women.
Amazon has also launched projects to support the employment of individuals with disabilities. In collaboration with the Italian National Agency for the Deaf, Amazon has hired 140 deaf workers at its logistics sites in Italy. In February 2024, Italy’s competition watchdog, the Autorità Garante della Concorrenza e del Mercato, imposed €7m fines on Amazon and British American Tobacco for misleading advertising practices.
The $131m seizure underscores the importance of compliance and the ongoing scrutiny large multinational companies face in their operations. The focus on Amazon non compliance serves as a reminder for companies to adhere strictly to local regulations and standards.
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