Italian Tax Police Conduct Searches at Amazon HQ Amid New Evasion Probe (IT:AMZN)

Italian tax police conducted searches at Amazon’s Milan headquarters and the homes of seven senior managers, along with KPMG offices, amid a new probe into potential tax evasion and an undisclosed permanent establishment in Italy from 2019 to 2024. Prosecutors allege Amazon EU Sarl should have paid more taxes in the country and are examining whether the company dismissed and rehired 159 employees of another Amazon entity to maintain a permanent establishment. Documents show Amazon had a permanent establishment in Italy prior to August 2024, when it entered a co-operative compliance program with Italy’s tax agency. The latest raids follow ongoing probes, including a December agreement to pay €510 million ($605.88 million) to settle a prior tax dispute, with prosecutors seeking to conclude the 2019-2021 probe early this year (February 12, 2026).