Amazon Agrees to Pay 510 Million Euros to Settle Tax Dispute in Italy
By Emilio Parodi
MILAN, Dec 10 (Reuters) – Amazon has reached an agreement with Italy’s tax collection agency to pay 510 million euros ($582 million) to settle a tax dispute, according to two sources familiar with the matter. This settlement is part of a series of cases involving the tech giant in Italy.
However, in a surprising turn of events, Milan’s prosecutors do not agree with the settlement between the revenue agency and Amazon and intend to continue their criminal investigation, as stated by two other sources.
Amazon has confirmed the settlement but did not disclose the exact amount it will pay. The company also criticized the regulatory environment in Italy, stating, “We will forcefully defend our position on the potential ungrounded criminal case.”
“Unpredictable regulatory environments, disproportionate penalties, and protracted legal proceedings are increasingly affecting Italy’s attractiveness as an investment destination,” Amazon added in a statement.
The Milan prosecutors suspect tax evasion totaling around 1.2 billion euros for the years 2019-2021 and aim to conclude their investigation early next year, according to sources familiar with the matter.
In addition to this case, prosecutors are also looking into two other investigations involving Amazon. One investigation concerns alleged tax evasion from 2021-2024, while the other focuses on alleged customs and tax fraud related to Chinese imports.
Recently, an Italian Amazon unit settled a separate probe by paying compensation and discontinuing a monitoring system for delivery staff. The group paid approximately 180 million euros ($210 million) to Italian tax authorities in that case, joining several other companies that have reached settlements to close similar investigations over the past two years.
($1 = 0.8592 euros)
(Reporting by Emilio Parodi, writing by Gavin Jones and Keith Weir, editing by Crispian Balmer)
