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Europe 'to bill Amazon for Luxembourg back taxes' | Europe 'to bill Amazon for Luxembourg back taxes' |
(about 7 hours later) | |
Amazon is facing a bill for hundreds of millions of euros in back taxes linked to an alleged "sweetheart" tax deal with Luxembourg. | Amazon is facing a bill for hundreds of millions of euros in back taxes linked to an alleged "sweetheart" tax deal with Luxembourg. |
The European Union's (EU) competition commissioner Margrethe Vestager is expected to announce a recovery order later, reports the Financial Times. | The European Union's (EU) competition commissioner Margrethe Vestager is expected to announce a recovery order later, reports the Financial Times. |
It follows a three-year investigation into tax arrangements between the US online retailer and Luxembourg. | It follows a three-year investigation into tax arrangements between the US online retailer and Luxembourg. |
In a preliminary ruling the commission said the deal "constituted state aid". | In a preliminary ruling the commission said the deal "constituted state aid". |
Such a move by the European Commission (EC) would be similar to a 13bn euros (£11.5bn) bill it levied against US technology giant Apple last year for Irish back taxes, the Financial Times said. | Such a move by the European Commission (EC) would be similar to a 13bn euros (£11.5bn) bill it levied against US technology giant Apple last year for Irish back taxes, the Financial Times said. |
Europe claimed that Ireland had given Apple, which employs around 4,000 people in the Republic, illegal state aid through special tax arrangements. Apple is appealing against the ruling. | Europe claimed that Ireland had given Apple, which employs around 4,000 people in the Republic, illegal state aid through special tax arrangements. Apple is appealing against the ruling. |
The tax deal between Luxembourg and Amazon was struck in 2003. | The tax deal between Luxembourg and Amazon was struck in 2003. |
At the time, Jean-Claude Juncker, the European Commission's president, was the prime minister of Luxembourg. | |
The European Commission declined to comment. Amazon was unavailable for comment. | The European Commission declined to comment. Amazon was unavailable for comment. |
Previously the EC has said that its "preliminary view is that the tax ruling... by Luxembourg in favour of Amazon constitutes state aid." | Previously the EC has said that its "preliminary view is that the tax ruling... by Luxembourg in favour of Amazon constitutes state aid." |
However, Amazon said it "has received no special tax treatment from Luxembourg". | However, Amazon said it "has received no special tax treatment from Luxembourg". |
"We are subject to the same tax laws as other companies operating here [in Luxembourg]," it said. | "We are subject to the same tax laws as other companies operating here [in Luxembourg]," it said. |
Separately, the European Commission is set to announce plans to crack down on VAT fraud which cost the 28-nation bloc 150bn euros in lost tax each year. | Separately, the European Commission is set to announce plans to crack down on VAT fraud which cost the 28-nation bloc 150bn euros in lost tax each year. |
It is expected to set out a major reform of EU tax rules, including changes to cross-border VAT, on Wednesday. | It is expected to set out a major reform of EU tax rules, including changes to cross-border VAT, on Wednesday. |
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