Italian police seize $94 million from UPS over alleged tax and labor offenses. In response to allegations of tax evasion and improper labor practices, Italy’s financial police confiscated around 86.5 million euros ($94.5 million) from the Italian branch of the United Parcel Service (UPS.N.). This corporation operates in the United States and provides package delivery services.
The Guardia di Finanza tax police and the Milan prosecutors announced they had taken the money from “a leading logistics company.” According to the seizure order that Reuters viewed, the firm in question was UPS.
UPS Italia SRL did not immediately respond to a request for comment. In a statement, the police and prosecutors claimed they had “discovered a complex tax fraud, which was characterized by the use of invoices for fictitious transactions and… fictitious labor contracts.”
According to the 94-page seizure order, the prosecutors feared that between 2017 and 2022, the Italian arm of UPS was functioning as the direct employer of around 8,500 workers with whom cooperative labor contracting organizations nominally engaged.
According to the decision, the software used by UPS “teleguided” the employees in their daily duties using digital devices that they carried on their person.
The official number of UPS employees in Italy is merely one thousand. In addition, the ruling revealed that the prosecution requested that a judge prohibit UPS Italia from advertising for one year.
Searches were being conducted at the firm, according to the statement released by the police and the prosecutors, and three of the company’s leaders were being investigated.
According to the statement, the investigation is comparable to other investigations that have been carried out in recent times against other companies in the logistics industry in Italy.
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