Italian Authorities Confiscate $94 Million from UPS in Connection with Suspected Tax and Labor Violations

Italian Authorities Confiscate $94 Million from UPS in Connection with Suspected Tax and Labor Violations

15 Dec, 2023

Italian Authorities Confiscate $94 Million from UPS in Connection with Suspected Tax and Labor Violations

 

Italian authorities took decisive action by seizing 86.5 million euros ($94.5 million) from the Italian division of United Parcel Service (UPS.N) due to suspicions of tax fraud and illegal labor practices. This move, disclosed in a joint statement by Milan prosecutors and the Guardia di Finanza tax police, involved seizing funds from a significant logistics company, later confirmed to be UPS through the issued seizure order.

UPS Italia srl, the implicated entity, refrained from immediate comment upon the request for information. The statement from prosecutors and police unveiled the discovery of a complex tax fraud scheme that involved manipulating invoices for fictitious transactions and fabricating employment contracts.

The extensive 94-page seizure order outlined suspicions that UPS's Italian division, spanning from 2017 to 2022, functioned as the primary employer for approximately 8,500 workers officially contracted through cooperative labor contractors. Despite UPS officially recognizing only 1,000 employees in Italy, these workers were allegedly directed in their daily tasks using UPS software through digital devices they carried.

Furthermore, prosecutors sought a one-year ban on UPS Italia's advertising activities as stipulated in the order. Meanwhile, ongoing searches were underway at the company's premises, and three executives were under investigation, as stated in the joint statement by the police and prosecutors.

This investigation echoes similar probes targeting various entities within Italy's logistics sector, signaling a broader effort by authorities to address potential irregularities in the industry. The scrutiny emphasizes the gravity of suspected tax fraud and labor irregularities, underscoring the authorities' commitment to ensuring compliance and integrity within Italy's logistics operations.

 

 


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