Italian prosecutors in Milan have formally requested a criminal trial for four senior Amazon executives, alleging the company evaded roughly €1.4 billion in Italian taxes between 2016 and 2021. The case, which moves beyond civil settlements into a rare criminal prosecution, accuses Amazon of routing profits from its substantial Italian operations through its European headquarters in Luxembourg.

Amazon, which denies any wrongdoing, argues its structure complies with all tax laws and reflects legitimate business decisions. The company previously settled a separate Italian tax claim for €100 million in 2017. This new allegation, however, is an order of magnitude larger and targets individuals, suggesting prosecutors believe they can demonstrate intentional evasion.

The core legal argument hinges on whether Amazon’s Italian logistics network—dozens of fulfillment centers and tens of thousands of employees—constitutes a "permanent establishment" that should be taxed locally. Italian authorities contend the real economic activity occurs in Italy, not Luxembourg, where the profits are booked.

This prosecution arrives as global tax reforms, like the OECD's 15% minimum rate, slowly take effect. Italy has been particularly assertive in pursuing tech multinationals, having previously secured settlements from other giants. A decision to proceed to trial rests with a Milan judge, who will review the evidence. If the case moves forward, it could signal a more aggressive era of European tax enforcement, where executives face personal legal risk alongside corporate financial penalties.

Source: Webpronews