Italian police have seized €46.8 million ($49.1 million) from DHL Express Italy as part of an ongoing investigation into alleged tax fraud and illicit labor supply, according to a 50-page decree reviewed on Wednesday.
Milan prosecutors accuse the company of circumventing labor and tax laws by using false invoices and relying on cooperatives or limited liability companies that supplied workers without paying taxes and social security contributions.
The investigation covers the period from 2019 to 2023. Deutsche Post DHL confirmed that its Italian subsidiary is under regulatory scrutiny. “As this is part of an ongoing investigation, we cannot provide further details,” a company spokesperson said, adding that DHL is fully cooperating with authorities and that services to customers remain unaffected.
This marks the second time Milan prosecutors have targeted a local DHL unit. In 2021, authorities seized over €20 million from DHL Supply Chain over similar charges. Since 2021, Italian authorities have issued seizure orders worth €634 million against more than a dozen delivery and logistics companies over their labor practices.
Prosecutors allege that DHL Express Italy used intermediaries to create “bogus procurement contracts” with cooperatives and companies that acted as fronts for cheap labor while submitting false tax declarations. They stated that this business model “facilitates the exploitation of workers and results in unfair competition” and has been a long-standing issue in Italy.
Similar investigations into labor violations have targeted other major companies, including FedEx, Amazon, GLS, GXO Logistics, DB Schenker, and Italian supermarket chain Esselunga.
