International Tax Panorama

Italian authorities have seized €27.4 million from two subsidiaries of CEVA Logistics as part of a new investigation into alleged tax fraud and unlawful labour practices. The action was carried out by Italy’s financial police following an inquiry led by prosecutors in Milan.

According to investigators, the case centers on allegations that the CEVA units issued false invoices to conceal the use of low-cost labour. Prosecutors believe this arrangement allowed the companies to bypass labour regulations and avoid paying certain taxes and social security contributions. The investigation currently focuses on three managers from CEVA Logistics Italia and two from CEVA Ground Logistics Italy, along with the two corporate entities themselves, for allegedly filing inaccurate tax declarations between 2020 and 2024.

CEVA Logistics confirmed that the assets had been seized and stated that it is cooperating fully with the authorities. The company said it has “full confidence” in the investigation process and noted that the legal action does not affect its ongoing operations.

The probe forms part of a broader effort by Italian authorities to address alleged labour and tax violations within the logistics sector. In recent years, similar investigations have involved major multinational companies including FedEx, Amazon, and DHL.

This is not the first time CEVA Logistics Italia has faced scrutiny from Milan prosecutors. In 2019, the company was placed under court administration for a year following allegations related to labour exploitation. The measure was lifted in early 2020 after a judge concluded that the company had implemented corrective steps and adopted a new operational model aimed at improving transparency and compliance.

Prosecutors noted in one of the recent seizure orders that similar investigations over the past five years have resulted in more than €1 billion being paid to the Italian state and the regularization of over 54,000 workers across 37 companies. The ongoing investigation into CEVA Logistics represents another significant development in Italy’s efforts to address labour and tax practices in the logistics industry.