The Italian tax police have seized €84m (£71m) from GXO amid a fraud investigation, marking a significant development in the logistics sector.
- GXO is accused by the Milan Prosecutor’s Office of bypassing labour and tax regulations through the use of cooperatives or limited companies that skirt tax duties.
- Despite the allegations, GXO asserts full compliance with all legal requirements, including Regulation 231, and is cooperating with the Italian public prosecutor.
- GXO emphasises its commitment to direct employment, having restructured its workforce over recent years to incorporate thousands of direct employees.
- Operations at GXO’s sites in Italy remain unaffected by the ongoing investigation, continuing as usual.
The Italian tax police have enacted a significant seizure of €84m (£71m) from the logistics company GXO as part of an investigation into alleged financial misconduct. This action stems from a 154-page decree issued by the Milan Prosecutor’s Office, which accuses GXO of evading essential labour and tax obligations. According to the decree, the company reportedly relied on the establishment of cooperatives or limited liability entities to supply workers, thereby allegedly avoiding necessary tax and social security contributions.
Despite the severity of these allegations, GXO has firmly stated its adherence to all applicable laws, asserting that it is ‘actively collaborating’ with the Italian public prosecutor. A GXO spokesperson highlighted that similar inquiries are underway across the Italian logistics sector, indicating a broader investigation into industry practices. The spokesperson further affirmed the company’s rigorous compliance controls, underscoring GXO’s implementation of a direct employment model for a significant portion of its Italian workforce over several years.
GXO’s operations across Italy remain unaffected as the investigation progresses. The spokesperson reassured stakeholders by stating that all GXO sites in Italy continue to operate normally, reflecting the company’s resilience amidst regulatory scrutiny. The company’s proactive stance in dealing with the investigation is evident, as it engages openly with authorities while striving to maintain business continuity.
This case illustrates the complex interplay between multinational business operations and national regulatory frameworks, with GXO’s situation highlighting the potential risks associated with certain employment practices. It also underscores the importance of stringent compliance measures and transparent operational procedures within the logistics industry, particularly when navigating international jurisdictions.
GXO maintains its operations smoothly in Italy while cooperating fully with the ongoing investigation.
