Home » Amazon “wins” against the EU: there was no tax aid in Luxembourg

Amazon “wins” against the EU: there was no tax aid in Luxembourg

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There was “no selective advantage” in favor of a Luxembourg subsidiary of the Amazon group, the e-commerce giant that was repeatedly targeted by Brussels on charges of circumvention and anti-competitive practices. The European Court of Justice based in Luxembourg has in fact canceled the EU order against Amazon in 2017 to pay approximately 250 million euros (303.8 million dollars) to Luxembourg, in compensation for unpaid taxes thanks to a tax ruling deemed to benefit the company. According to the Court, Amazon did not benefit from a specific advantage and is not required to compensate the resulting benefits.

In the same verdict, the Court instead found Engie SA, the French energy company, in the wrong, confirming the obligation to compensate Luxembourg by 120 million euros after the group had enjoyed an ad hoc agreement to reduce its tax burden. in the country.

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The case of the exemption for Amazon’s “tax architecture”

The most anticipated and controversial verdict remains that of the e-commerce giant. The Grand Duchy authorities had exempted Amazon from Luxembourg corporate income tax due to its corporate form, endorsing the method of calculating the amount of the annual royalty payable by LuxOpCo to parent company Amazon Europe Holding Technologies SCS under the license agreement. . The Commission classified the agreement as ‘State aid’ and ordered the recovery of any benefits. The EU Court ruled to the contrary, arguing that the Commission has not demonstrated in a legally adequate way that there has been an undue reduction in the tax burden of the European branch of the Amazon group. “The European Commission has not proven, according to the required legal standards, that there has been an undue reduction in the tax burden of a European subsidiary of the Amazon group,” the court ruled.

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