Investigating a large-scale tax fraud case
The Guardia di Finanza in Milan has executed a preventive seizure order worth over €46 million against a leading company in the transport and express delivery sector. The operation, coordinated by the Milan Public Prosecutor’s Office, is part of an investigation into illegal labor outsourcing schemes.
The probe, carried out by the Economic and Financial Police Unit of Milan in collaboration with the Tax Fraud Division of the Italian Revenue Agency, exposed a complex tax fraud system involving the issuance of fake invoices for non-existent services.
How the illegal labor outsourcing scheme worked
Investigators uncovered a fraudulent labor management system involving fake service contracts. This allowed the company to conceal real employment relationships behind a network of shell companies and cooperative businesses, which systematically evaded VAT payments and social security contributions.
These companies acted as “labor reservoirs”, shifting workers from one entity to another to bypass tax and labor regulations. This setup enabled the company to significantly cut personnel costs, at the expense of both workers and the government.
Legal consequences and corporate accountability
Alongside the asset seizure, authorities are issuing legal notices to individuals and corporate entities involved, including charges of corporate administrative liability. Under Italian law, companies can be held accountable for criminal offenses committed by their executives if these acts benefit the business.
It is important to note that the investigation is still in its preliminary phase, and the guilt of the accused can only be established by a final court ruling.
Impact on the sector and reflections on fraud prevention
This case highlights the growing focus of authorities on combating tax fraud and illegal labor practices. The use of fake contracts and shell companies undermines fair competition, harming businesses that comply with regulations and ethical standards.
Have you ever encountered irregular employment practices in the logistics or labor sector? Share your thoughts in the comments below.
