Italian Prosecutors Seek Trial For Amazon, Four Execs Over Tax Evasion

An anonymous reader writes: Milan prosecutors have requested trial for Amazon's European unit and four of its managers over alleged tax evasion worth around $1.38 billion, two sources with direct knowledge of the matter said on Thursday. The move is unprecedented for a case of this kind in Italy, as Amazon agreed in December to pay 527 million euros, including interest, to Italy's Revenue Agency to settle the tax dispute. In all previous cases involving other international groups, once a settlement was reached and payment made, prosecutors closed related criminal investigations, either through plea deals or by dropping the cases. This time, however, Milan prosecutors did not share the tax authority's approach and decided to press ahead with their probe, leading to a request that the suspects be sent to trial.

After the tax settlement in December, the U.S. tech giant said it would "forcefully defend its position on the potential ungrounded criminal case." "Unpredictable regulatory environments, disproportionate penalties, and protracted legal proceedings are increasingly affecting Italy's attractiveness as an investment destination," it added. A judge will now set a date for a preliminary hearing to decide whether to indict the defendants or dismiss the case.