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Home>UPDATE: EU orders Amazon to pay EUR250 million in back taxes to Luxembourg

UPDATE: EU orders Amazon to pay EUR250 million in back taxes to Luxembourg

UPDATE: EU orders Amazon to pay EUR250 million in back taxes to Luxembourg

10/04/2017

The European Commission has ordered Luxembourg to recoup EUR250 million ($294 million) from Amazon.com Inc. (AMZN) in back taxes, saying the U.S. e-commerce giant has received illegal state aid (http://europa.eu/rapid/press-release_IP-17-3701_en.htm). The EU's antitrust body said Wednesday Luxembourg had granted Amazon "undue tax benefits" that allowed the company to pay substantially less tax than other businesses. "As a result, almost three quarters of Amazon's profits were not taxed," said Margrethe Vestager, the EU's competition commissioner. "This is illegal under EU state aid rules. Member states cannot give selective tax benefits to multinational groups that are not available to others," she said. Amazon shares were down 0.3% in thin premarket trade. The Amazon ruling comes amid a renewed crackdown by the EU to scrutinize tax arrangements between its various member states and big multinationals operating in Europe. Last August, the commission ordered Apple Inc. to repay Ireland EUR13 billion in uncollected taxes. Both Ireland and Apple have contested the ruling. Also on Wednesday, the EU said it had referred Ireland to the European Court of Justice for failing to recover the alleged illegal state aid from Apple.

-Sara Sjolin; 415-439-6400; AskNewswires@dowjones.com

 

(END) Dow Jones Newswires

10-04-17 0627ET

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