🔍 Investigation Uncovers Illegal Practices
Italian financial police have seized €121 million from a Milan-based Amazon branch. The company is accused of tax fraud and worker exploitation. Prosecutors found Amazon using illegal subcontracting schemes, called "labour reservoirs," to cut costs and avoid taxes. This involves large companies subcontracting logistics to other firms and cooperatives. These firms then avoid paying VAT and social security charges.
📜 Details of the Alleged Fraud
Authorities detailed how Amazon used fake contracts for labor supply. These contracts led to the issue and use of false invoices. Milan prosecutors reconstructed the "labour supply chain," discovering that labor relations were managed by 'filter' companies. These companies, in turn, used cooperative firms that systematically omitted necessary tax payments. The scheme's complexity made it challenging for authorities to trace the illicit activities.
📧 Amazon's Response
Amazon responded to the allegations via an emailed statement to Euronews. The company said, "We comply with all applicable laws and regulations where we operate, and require companies who work with us to do the same." They emphasized their established Supplier Code of Conduct, ensuring partners adhere to high standards. Amazon also stated they would continue to assist authorities in the investigation.
🌐 Broader Context and Similar Cases
Amazon is the latest in a series of investigations by Italian prosecutors into major companies. Previous targets include DHL, Uber, and Lidl. In December, Airbnb settled a four-year tax dispute with Italy, paying €576 million. Earlier this year, Amazon faced fines for unfair commercial practices related to their Subscribe and Save option. The automatic nature of this function was deemed an infringement on consumers' rights by the country's antitrust authority.
Do you think Amazon is guilty of tax fraud and worker abuse?
