Amazon wins EU tax fight

The Associated Press – | History: 462522

Amazon will not have to pay around 250 million euros ($273 million) in back taxes after European Union judges ruled in favor of the U.S. e-commerce giant on Thursday, dealing the bloc a defeat from 27 nations in their efforts to combat corporate taxes. avoidance.

The EU's top court's ruling is final, ending the long-running legal battle over tax deals between Amazon and the Luxembourg government and marking yet another setback for antitrust chief Margrethe Vestager's crackdown.

The Court of Justice supported a 2021 Decision by lower court judges who sided with Amazon, saying the European Commission, the EU's executive branch, had not proven that Amazon received illegal state support.

“The Court of Justice confirms that the Commission did not establish that the tax ruling granted to Amazon by Luxembourg was state aid incompatible with the EU's internal market,” the court said in a press release.

Amazon welcomed the decision, saying it confirms that the company “followed all applicable laws and did not receive any special treatment.”

“We look forward to continuing to focus on delivering to our customers across Europe,” the company said in a statement.

The commission said it “will carefully study the judgment and assess its implications.”

The case dates back to 2017, when Vestager accused Amazon of unfairly profiting from special low tax conditions since 2003, in small Luxembourg, where its European headquarters are located. As a result, almost three-quarters of Amazon's EU profits were not taxed, she said.

The EU has targeted agreements between countries and individual companies used to attract foreign multinationals looking for a place to establish their headquarters in the EU. The practice has left EU states competing against each other and multinationals pitting them against each other.



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