View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
January 16, 2015

Amazon’s Luxembourg tax deal constitutes ‘state aid’ says EC

Amazon denies the claims that they were given illegal tax breaks by Luxembourg.

By

Amazon has denied investigation claims that Luxembourg gave them illegal tax breaks.

The European Commission today published findings of a preliminary investigation, detailing suspicions about Amazon’s tax deal with Luxembourg in 2003.

The investigation, launched in October 2014, found that the arrangement could grant a competitive advantage to Amazon, thereby breaking EU rules that are designed to protect customers.

"The Commission’s preliminary view is that the tax ruling of 5 November 2003 by Luxembourg in favour of Amazon constitutes state aid… and the Commission has doubts at this stage as to that ruling’s compatibility with the internal market," the 23-page document stated.

"The commission is of the opinion that through the contested tax ruling the Luxembourgish authorities confer an advantage on Amazon."

"That advantage is obtained every year and on-going, when the annual tax liability is agreed upon by the tax authorities in view of that ruling."

Amazon has reportedly denied the claims, saying it "has received no special tax treatment from Luxembourg".

Content from our partners
How to combat the rise in cyberattacks
Why email is still the number one threat vector
Why HR must take firm steps to become a more data-driven function

"We are subject to the same tax laws as other companies operating here," the online retail giant said in a statement.

The EU has also launched similar investigations into Apple’s deals with Ireland and Starbuck’s deal with the Netherlands.

Websites in our network
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
I consent to New Statesman Media Group collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU