Stock Markets March 12, 2026

Milan Prosecutors Seek Trial for Amazon Europe and Four Executives Over Alleged €1.2 Billion Tax Shortfall

Decision breaks with past practice after a partial settlement with Italy’s tax authority

By Sofia Navarro AMZN
Milan Prosecutors Seek Trial for Amazon Europe and Four Executives Over Alleged €1.2 Billion Tax Shortfall
AMZN

Prosecutors in Milan have asked a court to send Amazon’s European unit and four managers to trial on allegations of tax evasion amounting to roughly 1.2 billion euros. The move departs from prior Italian practice, where criminal probes were typically dropped after companies reached settlements with the tax authority and made payments.

Key Points

  • Milan prosecutors have asked a court to send Amazon's European unit and four executives to trial over alleged tax evasion of approximately 1.2 billion euros.
  • Amazon previously reached an administrative settlement in December, paying 527 million euros including interest to Italy's Revenue Agency, but Milan prosecutors declined to close their criminal probe.
  • The prosecutors' decision departs from prior Italian practice in cases involving other international groups, where criminal investigations typically ended after settlement payments were made.

Milan prosecutors have formally requested that Amazon's European unit and four of its executives be sent to trial over alleged tax evasion totalling about 1.2 billion euros, according to two sources with direct knowledge of the matter.

The development is notable because it marks a departure from what has generally occurred in Italy in similar cases. In December, Amazon agreed to pay 527 million euros, including interest, to Italy's Revenue Agency to resolve the disputed tax liabilities. In earlier instances involving other multinational groups, investigators typically closed related criminal inquiries after a settlement was reached and payment was made, either by negotiating plea deals or by dropping the cases.

However, Milan prosecutors did not adopt the tax authority's conciliatory approach in this instance. Instead they continued their criminal probe and have asked the court to send the named corporate entity and the four executives to trial - a procedural step that moves the matter into the criminal justice system.

The alleged amount at issue is presented in media reports as roughly 1.2 billion euros, which is equivalent to about $1.38 billion. Amazon was not immediately available for comment. ($1 = 0.8669 euros)

The request from prosecutors underscores a divergence between the criminal enforcement arm in Milan and the administrative resolution reached with Italy's Revenue Agency. While the settlement resulted in a payment of 527 million euros including interest, prosecutors pressed ahead with a separate criminal pathway rather than ending their inquiry alongside the tax authority.

At this stage, the action is limited to the filing of a request to proceed to trial. Sources described the move as unprecedented in Italy for a matter where a substantial payment to the tax authority had already been made. The case now awaits judicial review to determine whether the suspects will formally be tried on charges linked to the alleged tax shortfall.


Context notes - The reporting sources described the amounts and procedural steps; they also indicated that this approach differs from prior practice in similar international tax disputes in Italy. No further comment has been issued by the company.

Risks

  • Uncertainty over criminal proceedings - the request to send the suspects to trial moves the matter into the criminal justice system, creating legal and reputational risks for the company and its executives; sectors affected include technology and e-commerce.
  • Divergent enforcement approaches - the split between the tax authority's settlement and prosecutors' decision to continue the probe signals potential inconsistencies in enforcement that could affect multinational firms operating in Italy, particularly those in tech and international corporate services.
  • Timing and judicial outcome - the request for trial introduces uncertainty about the timeline and final legal outcome, which could influence investor perception of the company and related market sectors until resolved.

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