Italian police search couriers in tax and labour probe into Amazon, SDA and GLS (updated)

International Distribution Services

17/12/2024 18:16

(Adds details and background, paragraphs 5-12)
       MILAN, Dec 17 (Reuters) - Italy's tax police on Tuesday
searched the headquarters of nine courier companies for alleged
false invoices benefiting ecommerce and logistics giants Amazon
 AMZN.O , SDA and GLS, according to a search order reviewed by
Reuters.
    Prosecutors in the northwestern city of Turin are
investigating Amazon Italia Transport and Amazon City Logistica,
Italian units of Amazon, SDA Express Courier and General
Logistics System Enterprise (GLS) for alleged tax fraud and
illegal labour practices, according to the 23-page order.
    SDA is part of Poste Italiane  PST.MI , while GLS is a
subsidiary of British group International Distribution Services
 IDSI.L .
    Poste declined to comment. Amazon had no immediate comment
when reached by Reuters. GLS did not reply to an e-mailed
request for comment from Reuters.
        The two Italian units of Amazon are under investigation
for allegedly having evaded more than 10 million euros ($10.5
million) from 2019 to 2022 and using "fake procurement contracts
instead of labour contracts".
  
        SDA is under probe for the same allegations, covering 23
million euros of VAT allegedly evaded from 2019 to 2023, and for
GLS, for approximately 10 million euros from 2020 to 2023,
according to the search order.
  
        The investigation alleges that the Italian units of
Amazon, SDA and GLS circumvented labour and tax laws, relying on
limited liability companies that supplied workers while omitting
VAT tax duties and reducing social security payments.
  
        Amazon Italia Transport is also at the centre of 
    two other investigations
     carried out by the Milan Public Prosecutor's Office over
tax evasion. In July, the Guardia di Finanza police 
    had seized 121 million euros
     from Amazon Italia Transport.
  
        Amazon in July said it had adhered to the necessary
rules.
  
        Similar investigations have targeted other large
businesses in recent years including global delivery groups DHL
and UPS  UPS.N , German logistics firm DB Schenker and Italian
supermarket chain Esselunga, Milan prosecutors had said in a
statement.
  
    
 ($1 = 0.9521 euros)

 (Reporting by Emilio Parodi ad Elvira Pollina; editing by Keith
Weir, Hugh Lawson and Leslie Adler)
 ((emilio.parodi@thomsonreuters.com; +39 06 8030 7744; Reuters
Messaging:))