MILAN, July 26 (Reuters) - An Italian unit of Amazon ( AMZN )

is being investigated by Milan prosecutors for

suspected tax evasion, two sources said on Friday, but the

inquiry was not linked to a multi-million euro seizure from

another of the group's Italian units this week.

Italy's tax police on Tuesday seized some 121 million euros

($131 million) from another unit of the U.S. e-retailer as part

of an investigation into alleged tax fraud and illegal labour

practices, prosecutors' documents showed.

The second tax evasion investigation started in 2021 and was

triggered by routine checks carried out by tax police in an area

north of Milan, the two sources with knowledge of the matter

said.

The inquiry focuses on tax rules over the trading of goods

within Italy's borders and internationally, with particular

reference to value added taxes and custom duties, the sources

said.

The size of the potential tax evasion has not yet been

quantified, they said.

Amazon ( AMZN ) had no immediate comment.

Italy's tax authorities and tax police in the city of Monza,

just north of Milan, have been conducting checks on Amazon ( AMZN )

accounts in Italy in relation to the inquiry over the past few

years, they said.

($1 = 0.9211 euros)

(Reporting by Emilio Parodi; Additional reporting by Elvira

Writing by Valentina Za;

Editing by Ros Russell)