GXO said it was “actively collaborating” with Italy’s public prosecutor following reports that the country’s tax police had seized €84m (£71m) as part of an investigation into alleged fraud.
In a 154-page decree, the Milan Prosecutor’s office was reported as accusing the US logistics company of circumventing labour and tax laws, relying on cooperatives or limited liability companies that supplied workers while omitting tax and social security payments.
However, GXO said it fully complied with all applicable laws.
A GXO spokeswoman said: “Similar to multiple inquiries across the Italian logistics sector, the Milan public prosecutor’s office has initiated an inquiry into GXO’s relationship with certain cooperatives and GXO is actively collaborating with the public prosecutor.
“GXO fully complies with all applicable laws including Regulation 231, has rigorous controls and procedures in place, and has implemented a direct employment model for thousands of employees over the past several years, representing the majority of its Italian operations.”
The spokesman added: “GXO’s sites within Italy continue to operate as usual.”
