On April 2, 2025, Italian authorities executed a significant seizure of 33 million euros (approximately $36 million) from the supermarket chain Iperal and the Swiss logistics giant Kuehne+Nagel. This action came as part of an extensive investigation into alleged tax fraud, primarily focusing on the illegal supply of labor through what are referred to as "reservoir companies." These companies, according to prosecutors, have been systematically exploiting workers by failing to pay the necessary social security contributions and taxes.
The Economic-Financial Police Unit of the Guardia di Finanza in Milan carried out the operation, which involved two urgent preventive seizures of approximately 16.5 million euros each from Iperal and Kuehne+Nagel. Prosecutor Paolo Storari is leading the investigation, which has uncovered a complex scheme involving bogus procurement contracts that allowed these companies to bypass labor and tax laws.
Documents reviewed by Reuters indicate that the investigation targets the period from 2020 to 2023 for Kuehne+Nagel and from 2021 to 2024 for Iperal. The authorities have also conducted searches on the premises and computer systems of both companies, aiming to gather further evidence of fraudulent activities.
The allegations suggest that both companies engaged cooperatives or limited liability companies to provide labor, effectively creating a facade for cheap labor while avoiding tax and social security payments. This practice not only undermines fair labor standards but also results in significant unfair competition within the market.
In a statement, Kuehne+Nagel confirmed that its Italian subsidiary is currently undergoing inspections by local authorities and emphasized its commitment to cooperating fully with the investigation. Similarly, Iperal stated that it has always operated in compliance with relevant regulations and intends to review the documents related to the case.
These recent seizures are part of a broader crackdown by Italian authorities on labor practices within the logistics and delivery sectors. Since 2021, more than 650 million euros in seizure orders have been issued against various companies involved in similar fraudulent activities. This ongoing scrutiny has led to the regularization of over 49,000 workers who were previously at risk of exploitation.
The Public Prosecutor's Office in Milan has noted that previous investigations into labor supply chains have recovered over 550 million euros in tax compensation for the Revenue Agency. Additionally, the investigations have resulted in the stabilization of thousands of workers who were previously left vulnerable by these illicit labor practices.
The current investigation into Iperal and Kuehne+Nagel highlights the persistent issue of labor exploitation in Italy, particularly within the logistics sector. Prosecutors have described the use of "reservoir companies" as a widespread phenomenon, where workers are often employed under precarious conditions and denied their rightful benefits.
As the investigation unfolds, authorities are expected to continue their efforts to combat tax fraud and labor exploitation, aiming to ensure fair treatment for all workers and uphold the integrity of the labor market.
The implications of this case extend beyond the immediate financial penalties for Iperal and Kuehne+Nagel. It raises critical questions about labor practices in Italy and the responsibility of companies to adhere to legal standards. With the spotlight on these major players, the hope is that this investigation will serve as a deterrent to other companies engaging in similar practices.
In light of these developments, the Italian government is likely to face increased pressure to strengthen regulations surrounding labor practices and tax compliance. The ongoing scrutiny of labor supply chains may lead to more stringent enforcement measures aimed at protecting workers and ensuring that companies fulfill their obligations.
As the situation continues to evolve, it remains to be seen how Iperal and Kuehne+Nagel will respond to the allegations and what measures they will take to rectify their practices. The outcome of this case could have significant repercussions for the logistics industry and labor rights in Italy.
In conclusion, the seizure of 33 million euros from Iperal and Kuehne+Nagel marks a critical moment in the fight against tax fraud and labor exploitation in Italy. With a history of similar cases and ongoing investigations, authorities are determined to hold companies accountable and ensure fair treatment for workers across the nation.
