- Investigation Overview: Italian prosecutors are investigating Amazon and three executives for alleged tax evasion of €1.2 billion ($1.26 billion), focusing on the company’s operations in Italy from 2019 to 2021, including scrutiny of its Luxembourg-based European unit.
- Allegations and Implications: The investigation suggests that Amazon’s algorithm enables non-EU sellers, mainly from China, to sell products in Italy without disclosing their identities, allowing them to evade Italian VAT. If proven, the allegations could lead to Amazon facing a total bill of up to €3 billion, including penalties and interest.
- Context and Previous Cases: The inquiry follows routine tax checks by police and is part of broader scrutiny on Amazon’s practices in Italy, where tax police had previously seized €121 million from an Italian unit for alleged tax fraud and labor law violations. Amazon maintains its commitment to tax compliance and highlights its significant tax contributions in Italy.
Source:
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
