MILAN, Feb 12 - Italian tax police executed search operations on Thursday at Amazon's headquarters in Milan as part of a newly opened tax evasion probe, two sources with direct knowledge of the matter said.
Those same sources said the Guardia di Finanza also carried out searches at the private residences of seven Amazon managers and at the offices of the auditing firm KPMG. The searches form part of a fresh line of inquiry into the U.S. technology and e-commerce group's tax arrangements in Italy.
The specific focus of this strand of the investigation is whether Amazon operated an undisclosed, permanent base in Italy during the period from 2019 to 2024. If investigators conclude the company maintained such a permanent establishment, the authorities contend Amazon should have paid additional taxes in the country for that period.
Representatives for Amazon were not immediately available to provide comment on the searches or the inquiry. KPMG declined to comment when contacted about the actions taken by the tax police.
The searches in Milan and at multiple private addresses are described by sources as part of ongoing investigative work rather than a concluded finding. Officials have not publicly announced findings or formal charges tied to this particular strand of the probe.
This development follows a pattern of focused fiscal scrutiny aimed at determining whether multinational firms have correctly declared local tax liabilities where authorities allege business activities effectively establish a taxable presence. The investigation in question centers specifically on the 2019-2024 period cited by authorities.
No additional operational, legal or financial details about the inquiry were provided by the sources. As the probe proceeds, any determinations regarding taxable presence or additional liabilities would be subject to further official steps and potential legal processes.
Summary
- Italian tax police searched Amazon's Milan headquarters, seven managers' homes and KPMG offices as part of a new tax evasion inquiry.
- Authorities are investigating whether Amazon had an undisclosed, permanent base in Italy from 2019 to 2024 and should therefore have paid more taxes.
- Amazon did not immediately respond to requests for comment and KPMG declined to comment.
Key points
- The Guardia di Finanza conducted searches at corporate and private locations tied to Amazon and at KPMG offices.
- The probe targets a possible undisclosed permanent establishment covering the 2019-2024 timeframe.
- Sectors most directly implicated include technology and e-commerce companies operating cross-border, as well as professional services such as auditing.
Risks and uncertainties
- Uncertainty over whether investigators will determine Amazon had a taxable permanent presence in Italy for 2019-2024 - this affects potential tax liabilities and any ensuing legal steps.
- Ongoing searches and inquiries may create short-term operational and reputational scrutiny for the companies involved, particularly within the technology/e-commerce sector and auditing firms.
- Details of the probe remain limited; without official conclusions or charges, the ultimate fiscal and legal outcomes are unclear.