MILAN (Reuters) - Italy's tax police have seized some 121 million euros from an Italian unit of e-commerce giant Amazon (AMZN.O), opens new tab as part of an investigation into alleged tax fraud and illegal labour practices, prosecutors' documents showed on Tuesday.
In a 94-page order, the Milan Prosecutors' Office accuses the logistic services unit Amazon Italia Transport of circumventing labour and tax laws, relying on cooperatives or limited liability companies that supplied workers while omitting VAT tax duties and reducing social security payments.
Prosecutors allege such a system enabled the Amazon unit to keep the prices of its services competitive in the Italian market. An Amazon spokesperson in Italy had no immediate comment when asked by Reuters about the case.
Similar investigations have targeted other large businesses in recent years including global delivery groups DHL and UPS (UPS.N), opens new tab, German logistics firm DB Schenker and Italian supermarket chain Esselunga, prosecutors said.