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Italian Tax Police Raid Amazon’s Milan Office as Prosecutors Probe Undeclared Presence

The case turns on whether Amazon’s European unit owed Italian taxes before entering a 2024 compliance program.

Overview

  • Guardia di Finanza searched Amazon’s Milan headquarters, the homes of seven managers, and KPMG’s offices, seizing computers and other IT devices.
  • Milan prosecutors opened an investigation into Luxembourg-based Amazon EU Sarl and its director, Barbara Scarafia, on suspicion of failing to declare income.
  • A search warrant alleges Amazon had a taxable permanent establishment in Italy prior to August 2024, when it joined a co‑operative compliance scheme with the tax agency.
  • Prosecutors cite the 2024 dismissal and rehiring of 159 workers by Amazon EU Sarl as evidence supporting the presence of a permanent establishment.
  • KPMG was searched for opinions it provided but is not under investigation, and the action comes alongside probes into an alleged €1.2 billion shortfall for 2019–2021, further 2021–2024 tax inquiries, and a customs case, following a €510 million settlement reached in December.