Photo: Trans.INFO

Italian finance police seize €84m from GXO Logistics as part of tax fraud investigation

Italian finance police in the northern city of Lodi have seized €83.9m from the Italian branch of well-known logistics company GXO.

You can read this article in 2 minutes

According to multiple reports in the Italian media, the seizure is the result of an investigation into an alleged “labour reservoir” that utilised a system of junk contracts to reduce personnel costs.

The investigation, led by the public prosecutor of the Milan prosecutor’s office, Paolo Storari, alleged that the payments of “tax, social security and welfare obligations” for the workers were “systematically” omitted.

State media outlet Rai News reports that the investigation found “false invoices for a total taxable amount of over 382.6 million euros were issued and subsequently used by the beneficiary company,” namely GXO.

The investigation is also said to have found that the employment relationships with the client company, which was always GXO, were “shielded” by 3rd parties that in turn used multiple other 3rd parties (namely cooperatives limited liability companies) to create what was labelled by the prosecutor as a “manpower reservoir”.

The prosecution argues that the Italian branch of GXO was the “final beneficiary of invoices for legally non-existent transactions in exchange for the stipulation of fictitious procurement contracts in place of labour supply contracts, in violation of industry regulations”.

Rai News states that as part of the ongoing investigation, several searches are underway in the provinces of Milan, Monza and Brianza, Novara and Piacenza against the companies involved.