Amazon to pay more than $580 million to settle tax probe in Italy

Amazon Settles $582 Million Tax Dispute in Italy

By Emilio ‌Parodi

MILAN, Dec 10 (Reuters) - Amazon has agreed with Italy's tax collection ‍agency to ‌pay 510 million euros ($582 million) to settle a tax dispute, two ⁠sources close to the matter said ‌on Wednesday, in one of a number of cases involving the company in Italy.

However, in an unusual development, Milan's prosecutors are in disagreement with the accord ⁠between the revenue agency and the U.S. tech company and plan to continue their criminal ​investigation, two other sources said.

Amazon confirmed the settlement, ‌but did not specify how much ⁠it would pay and criticised the Italian regulatory environment.

"We will forcefully defend our position on the potential ungrounded criminal case," the company ​said in a statement.

"Unpredictable regulatory environments, disproportionate penalties, and protracted legal proceedings are increasingly affecting Italy's attractiveness as an investment destination," it added.

The Milan prosecutors, who suspect evasion amounting to some 1.2 billion euros related ​to ‍2019-2021, expect to wrap ​up their probe early next year, according to the second two sources familiar with the investigation.

Prosecutors are also conducting two other investigations into the company - one involving alleged tax evasion relating to 2021-2024, and another centred on alleged customs and tax fraud involving Chinese imports.

An Italian Amazon unit ⁠this month paid compensation and scrapped a monitoring system for delivery staff, ending a separate probe into alleged ​tax fraud and illegal labour practices.

The group paid around 180 million euros ($210 million) to Italian tax authorities in that case, joining more than 30 other companies who have over the past ‌two years reached settlements to close similar investigations.

($1 = 0.8592 euros)

(Reporting by Emilio Parodi, writing by Gavin Jones and Keith Weir, editing by Crispian Balmer)