ROME, July 2 (Reuters) - Italy's tax police have seized

almost 84 million euros ($90 million) from GXO Logistics' ( GXO )

Italian unit following an investigation into alleged tax

fraud, prosecution documents showed on Tuesday.

In a 154-page decree, the Milan Prosecutors' Office accused

the U.S. logistics giant of circumventing labour and tax laws,

relying on cooperatives or limited liability companies that

supplied workers while omitting tax and social security

payments.

GXO did not immediately respond to a request for comment.

Prosecutors said GXO Italy, sometimes using intermediaries

acting as filters, used "bogus procurement contracts for the

provision of services" with these cooperatives or companies that

were a front for cheap labour, and made false tax declarations.

Prosecutors denounced it as a "fraudulent" business model

that "facilitates the exploitation of workers and results in

unfair competition", adding it has been common malpractice in

Italy for years, if not decades.

Similar investigations on irregular hiring schemes have

targeted other large businesses in recent years including global

delivery groups DHL and GLS, German logistics firm DB Schenker

and Italian supermarket chain Esselunga, Milan prosecutors said.

($1 = 0.9334 euros)