Amazon to pay $582M to settle tax dispute in Italy
What's the story
Amazon has agreed to pay €510 million ($582 million) to settle a dispute with Italy's tax collection agency. The settlement comes after allegations of tax evasion against the company. However, in a surprising turn of events, Milan's prosecutors have disagreed with the deal between the revenue agency and Amazon, and plan on continuing their criminal investigation.
Ongoing investigation
Prosecutors suspect tax evasion of €1.2B
The prosecutors suspect that Amazon may have evaded taxes worth around €1.2 billion between 2019 and 2021. They expect to conclude their investigation by early next year, according to Reuters. The company is also facing two other probes: one for alleged tax evasion from 2021-2024, and another for alleged customs and tax fraud involving Chinese imports.
Company statement
Amazon's response to the settlement and ongoing investigations
Amazon has criticized Italy's regulatory environment, saying, "We will forcefully defend our position on the potential ungrounded criminal case." It added that "unpredictable regulatory environments, disproportionate penalties, and protracted legal proceedings are increasingly affecting Italy's attractiveness as an investment destination."
Past case
Amazon's previous settlement in Italy
Earlier this month, an Italian unit of Amazon paid compensation and also scrapped a monitoring system for delivery staff. The move ended another probe into alleged tax fraud and illegal labor practices. In that case, the group had paid around €180 million ($210 million) to Italian tax authorities. It had joined over 30 other companies that have settled similar investigations in the last two years.