Brussels inquiry into the Amazon tax in Luxembourg – Le Nouvel Observateur

Brussels inquiry into the Amazon tax in Luxembourg – Le Nouvel Observateur

BRUSSELS (Reuters) – The European Commission on Tuesday announced the opening of a full investigation into the taxation of e-commerce giant Amazon Luxembourg investigation

The survey focuses on favorable terms. Amazon granted under a tax agreement of 2003, still in force, which capped its imposition in the Grand Duchy and limited the amount of tax to less than 1% of its European revenues.

The EC suspects Luxembourg agreeing Amazon artificially allocate revenue between the various entities in the structure in violation of the rules on business subsidies, which allowed the American company to significantly reduce its taxation .

“National authorities should not allow individual companies to artificially reduce their taxable profits by resorting to methods of calculation favorable,” said Joaquin Almunia, Commissioner responsible for competition in a statement. “It’s just that multinational subsidiaries pay their share of taxes and do not receive preferential treatment would amount to hidden subsidies.”

If the suspicions are confirmed, the EC could ask the Luxembourg to claim from the giant payment of the amounts that have evaporated as well, regarded as illegal state aid.

Amazon has reduced its tax bill substantially by ensuring that its US entity, owner of technology licenses, transfers its revenues to its Luxembourg subsidiary, tax-exempt.

The income reported by Amazon in Europe fell in the last two years, despite the sharp increase in sales after a tightening of rules the

American tax authority (IRS) to fight against abuses in tax planning. Group said Tuesday that it has found no specific agreement with Luxembourg. “Amazon did not receive any special tax treatment in Luxembourg, we are subject to the same tax rules as other firms (in this country),” he has said in a statement issued after the announcement of the Executive European.

The EC has already opened June 3 thorough imposition of Fiat Finance and Trade (Fiat) in Luxembourg, the Netherlands Starbucks and Apple Ireland surveys.

The opening of an in-depth investigation gives interested third parties and to the Member State concerned the opportunity to make their comments state. It does not prejudge the outcome of the investigation.

(Foo Yun Chee, Tangi Salaun and Veronique Tison for the French service)