Exclusive: EU aims to rule on Amazon's Luxembourg tax deal by July - sources
Reuters
Published May 19, 2016 03:44PM ET
Exclusive: EU aims to rule on Amazon's Luxembourg tax deal by July - sources
BRUSSELS - EU state aid regulators aim to rule on Amazon's (O:AMZN) tax deal with Luxembourg by July, two people familiar with the matter said on Thursday, and it may order the country's tax authorities to recover about 400 million euros ($448 million) in back taxes.
The European Commmission's decision will come after a near-two year investigation into whether a Luxembourg 2003 tax ruling for an Amazon subsidiary allows the company to pay less tax there than other companies, giving it an unfair advantage.
The 400-million-euro figure is a preliminary assessment and may be revised after discussions with other units in the Commission, one of the sources said.
An EU official questioned whether the commission's final decision on the legality of the tax deal would be in line with the current thinking of officials working on the case.
The European Commission declined comment. Luxembourg and Amazon had no immediate comment.
This would be the fourth ruling by the EU competition enforcer following an order in October last year to Luxembourg to claw back up to 30 million euros from Fiat Chrysler Automobiles (NYSE:FCAU)
The Commission in January told Belgium to recover around 700 million euros from 35 companies including Anheuser-Busch InBev (BR:ABI), BP (L:BP) and BASF (DE:BASFn) because of their participation in an illegal tax scheme.
Other outstanding similar cases are Commission probes of whether Apple (O:AAPL) paid too little tax in Ireland and burger chain McDonald's too little in Luxembourg.
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Written By: Reuters
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