(ANSA) - ROME, JUL 23 - Finance police on Tuesday carried out
the preventive seizure of around 121 millions euros from the
Italian branch of Amazon in relation to probe by Milan
prosecutors into alleged tax fraud and worker exploitation.
The case regards the allegedly use of so-called 'labour
reservoirs', a system under which large companies illegally
subcontract out logistics services to other firms and
cooperatives in order to get labour at rock-bottom rates and pay
less tax.
Milan prosecutors have opened more than a dozen similar
investigations into companies including DHL, GLS, Uber, Lidl,
BRT, Geodis, Esselunga, Securitalia, UPS, GS of the Carrefour
group and GXO, the latter of which had 84 million euros seized
from it on July 2.
The seizure order alleged that several of the cooperatives used
by Amazon "systematically failed to pay VAT and pension and
social-security contributions".
It alleged "a complex tax fraud" was being committed via an
"illegal mechanism of invoices for operations that legally do
not exist regarding the drawing up of sub-contracts for labour.
It added that "the fraudulent mechanism is still in place, with
very significant losses for the State coffers and situations of
worker exploitation that continue to the total benefit of Amazon
Italia Transport srl". (ANSA).