Tax Evasion – Amazon service providers

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Tax Evasion – Amazon service providers

Austria Financial police uncovered illegal work and tax evasion at Amazon service providers.

Misconduct was found at 130 of 133 companies checked.

Following a large-scale raid at Amazon’s distribution center in Großebersdorf in February 2020, the financial police have now taken further action against Amazon service providers.

In the process, the investigators frisked 133 parcel companies – twelve of which have or had a direct contract with Amazon. The remaining companies work as subcontractors or sub-subcontractors.

Only three of the companies inspected were clean;  the financial police found violations at 130 companies:  468 violations of the Social Security Act, 144 violations of the Unemployment Insurance Act, 96 cases of social benefit fraud, twelve violations of the Employment of Foreign Nationals Act, three violations under the Wage and Social Dumping Combat Act and one violation of the Trade Regulation Act.

In total, the financial police imposed penalties amounting to almost 770,000 euros, issued garnishments on receivables amounting to 325,000 euros and were able to seize around 88,000 euros in unpaid taxes and duties.

Specifically, the officers established the following offences:

468 transgressions under the General Social Security Act (total penalty requested by the financial police 752,440 euros),
144 violations under the Unemployment Insurance Act,
12 violations under the Employment of Foreign Nationals Act (total amount of penalty requested by the financial police: 12,000 euros)
3 violations under the Wage and Social Dumping Prevention Act (total amount of penalty requested by the financial police: 3,000 euros)
1 violation of the Trade Regulation Act.
In addition, 96 cases of social benefit fraud were reported.

Source – OE24 – copyright: BMF- Austrian Tax office

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