Rome [Italy], February 15: Italian prosecutors have launched a tax fraud investigation into retail giant Amazon, alleging the company evaded taxes amounting to 1.2 billion euros (1.3 billion U.S. dollars), Italian media reported on Friday.
According to Corriere della Sera, citing sources from Milan prosecutor's office, Amazon is accused of underpaying its Italian value-added tax over a three-year period ending in 2021.
If the allegations are upheld, Amazon could face a total financial liability of up to 3 billion euros, including penalties and interest, the report said.
The investigation could compel Amazon in Italy to apply value-added tax on all sales of goods produced outside the European Union, potentially affecting its business model, Corriere della Sera noted.
This is not the first time Amazon has faced scrutiny from Italian tax authorities. In 2017, the company agreed to pay 100 million euros to settle tax disputes related to the period between 2011 and 2015.
Source: Xinhua News Agency
