Amazon to be probed about their taxes

7 October 2014

amazoninstant The European Commission (EC) are going after Amazon over their taxes.

The EC is all set to launch a probe into allegations that Luxembourg, where Amazon’s European headquarters are based, enabled the internet retail behemoth to benefit from state subsidies, illegally.

According to the Financial Times:

"Investigators believe Luxembourg gave Amazon favourable terms in a 2003 tax ruling, which caps its tax exposure to the Grand Duchy and helps limit its overall bill to less than 1 per cent of the retailer’s European income, according to people briefed on the case."

This comes after the EC going after Apple for their 'sweetheart tax' deal.

In both cases, the commission could well ask Luxembourg to recover any taxes that they consider unpaid and the probes are set to be spread much wider after the EC was provided with "information on a number of cases".

The EU’s rules on state aid prohibit governments from giving selective advantages to individual companies.

TOPICS:   Tax   World News

What do you think?

Connect with Facebook, Twitter, or just enter your email to sign in and comment.

Your comment