French tax authorities have asked online retailer Amazon to pay $252m in pending taxes and interest.
The tax authority claims that the company owes the money to the French government by shifting its profit to a Luxemburg holding to avoid taxes in the country.
According to the French authorities, the pending taxes include penalties and interest are based on its earnings in the country between 2006-10.
French authority alleged that Amazon has avoided paying corporation tax in France by shifting its profit to Luxemburg holding to take advantage of generous taxation policy there of non-domestic earnings.
French government is also considering to find a way to levy tax the internet companies such as Google and Amazon in national and international levels, according to Reuters.
The authorities are planning to tax those companies who operate online businesses through channel sales in Europe from countries like Luxembourg taking advantage of low value added taxes, or low corporate tax in Ireland.
European Union rules on freedom of trade within the bloc generally allow firms to sell freely into one EU market from another.
A French spokesperson Najat Vallaud-Belkacem was quoted by Reuters as saying that even if the internet is a zone of freedom it shouldn’t be a lawless zone.
"Fiscal rules should be able to be applied to those activities as well," Vallaud-Belkacem.