Italian Tax Police Search Amazon in New Probe
Italian tax police carried out searches at the Milan headquarters of Amazon as part of a new tax evasion investigation, according to two sources familiar with the matter.
The Guardia di Finanza also searched the homes of seven Amazon managers and the offices of auditing firm KPMG. KPMG is not under investigation but provided opinions on actions now under scrutiny.
Milan prosecutors have opened an investigation into Amazon EU Sarl, based in Luxembourg, and its director Barbara Scarafia, on suspicion of failing to declare income. Authorities are examining whether Amazon had an undisclosed permanent establishment in Italy between 2019 and 2024 and therefore should have paid higher taxes locally.
According to a 13-page search warrant reviewed by Reuters, prosecutors believe Amazon maintained a permanent base in Italy even before August 2024, when the company entered a cooperative compliance program with Italy’s tax agency and began paying taxes domestically.
Investigators are reviewing employment changes made in 2024, when Amazon EU Sarl dismissed and rehired 159 employees from another Amazon entity. Prosecutors suspect this structure may indicate a permanent establishment during the years under review.
Tax police reportedly seized computers, hard drives and other IT devices, including archived staff emails stored after deletion from company systems.
The new probe adds to ongoing legal pressure on Amazon in Italy. In December, the company agreed to pay 510 million euros to settle a separate tax dispute. Prosecutors are also pursuing additional investigations concerning alleged tax evasion between 2021 and 2024, as well as a separate customs and tax fraud case involving imports from China.
The investigation underscores Italy’s broader efforts to tighten scrutiny of multinational tech firms operating across European tax jurisdictions.