E.U. Said to Order Luxembourg to Collect Back Taxes From Amazon
- 7 years ago
E.U. Said to Order Luxembourg to Collect Back Taxes From Amazon
The agreement between Amazon and Luxembourg effectively capped the amount of tax Amazon paid,
and relied on a method called transfer pricing, according to the commission.
At the time, the commission said that, in a deal struck in 2003, authorities in Luxembourg had conferred “an advantage on Amazon.” The commission added
that the “advantage is obtained every year and ongoing,” and that it “is also granted in a selective manner.”
Amazon does business across the 28-nation bloc, but lists its European headquarters as Luxembourg, a tiny country with a population of around 500,000.
BRUSSELS — European Union officials will order Luxembourg to collect back taxes from the online retail giant Amazon, a source with knowledge
of the decision said Tuesday, the latest in a series of moves where Brussels has sought to flex its regulatory muscle over Silicon Valley.
Both Amazon and Luxembourg’s finance ministry have previously denied that the online retail giant received special tax treatment or benefits.
The investigation into Luxembourg’s handling of Amazon was made public in 2014, and the commission issued a preliminary finding the following year.
The agreement between Amazon and Luxembourg effectively capped the amount of tax Amazon paid,
and relied on a method called transfer pricing, according to the commission.
At the time, the commission said that, in a deal struck in 2003, authorities in Luxembourg had conferred “an advantage on Amazon.” The commission added
that the “advantage is obtained every year and ongoing,” and that it “is also granted in a selective manner.”
Amazon does business across the 28-nation bloc, but lists its European headquarters as Luxembourg, a tiny country with a population of around 500,000.
BRUSSELS — European Union officials will order Luxembourg to collect back taxes from the online retail giant Amazon, a source with knowledge
of the decision said Tuesday, the latest in a series of moves where Brussels has sought to flex its regulatory muscle over Silicon Valley.
Both Amazon and Luxembourg’s finance ministry have previously denied that the online retail giant received special tax treatment or benefits.
The investigation into Luxembourg’s handling of Amazon was made public in 2014, and the commission issued a preliminary finding the following year.