Italian Tax Police Raid Amazon in New Tax Investigation, Sources Reveal

• The investigation targets Amazon's potential failure to disclose a permanent Italian establishment during a five-year period (2019-2024), which would have triggered higher tax obligations
• Tax police (Guardia di Finanza) conducted searches at multiple locations including Amazon's Milan headquarters, homes of seven company managers, and KPMG's offices
• Neither Amazon nor KPMG provided immediate comment on the investigation

Summary: Italian Tax Police Raid Amazon in New Tax Investigation

Italian tax authorities conducted searches at Amazon's Milan headquarters on Thursday, February 12, as part of a new tax evasion investigation into the U.S. technology giant. The Guardia di Finanza (Italy's tax police) also searched the homes of seven Amazon managers and offices of auditing firm KPMG.

Key Details

The investigation examines whether Amazon operated an undisclosed permanent establishment in Italy between 2019 and 2024, which would have required the company to pay higher taxes in the country. This probe represents a new development in ongoing scrutiny of Amazon's tax practices in Italy.

Parties Involved

• Amazon: U.S. tech giant facing investigation; no immediate comment provided
• KPMG: Auditing firm whose offices were searched; declined to comment
• Italian Tax Police (Guardia di Finanza): Conducting the investigation

Market Implications

This raid reflects intensifying European regulatory pressure on U.S. tech companies regarding tax compliance and permanent establishment rules. Italy has historically been aggressive in pursuing tax claims against multinational technology firms operating within its borders. The investigation spans five years (2019-2024), suggesting potentially significant tax liabilities if authorities determine Amazon maintained an undisclosed permanent base.

The targeting of both Amazon executives and their auditing firm indicates a comprehensive investigation that could have implications for how multinational tech companies structure their European operations. No specific amounts or potential penalties have been disclosed at this stage.