EU orders Amazon to pay 250 million euros in back taxes

[Deleted]

http://www.itv.com/news/2017-10-04/e...in-back-taxes/

Amazon faces a bill of at least 250 million euros (£221.5 million) in back taxes after the European Union ruled its tax affairs failed to comply with state aid rules.

It follows a three-year investigation into a sweetheart deal agreed in 2003 between the online retail giant and Luxembourg.

The EU Competition Commissioner Margrethe Vestager said Amazon's tax benefits were "illegal under EU state aid rules".

She added that the deal with Luxembourg substantially reduced the US online retailer's tax bill between May 2006 and June 2014.

"As a result, almost three quarters of Amazon's profits were not taxed. In other words, Amazon was allowed to pay four times less tax than other local companies subject to the same national tax rules.

The Commission said Luxembourg would now have to recover around £250 million euros plus interest from Amazon.

Ms Vestager said EU rules exist to prevent member states from "giving unfair advantages to selected companies".

She added that the ruling relates to Amazon EU and Amazon Europe Holding Technologies.

The Commission said that essentially due to the tax deal the online retailer was able to shift the majority of its profits from Amazon EU to Amazon Europe Holding Technologies, which was not subject to tax.

Subsequently Amazon was able to pay "substantially less tax than other businesses as a result".

The online retailer has also been under pressure over taxes in Britain and earlier this summer it was found to have paid 50% less UK corporation tax last year, despite a 54% jump in turnover.

Accounts filed by Amazon UK Services showed the company was billed £15.8 million in 2015 compared with £7.4 million in 2016.

Meanwhile, the Commission separately announced on Wednesday, that it was referring Ireland to the European Court of Justice for failing to recover unpaid taxes from Apple.

It comes after the US tech giant was hit with a 13 billion euro (£11.5 billion) tax bill in the wake of an investigation which found that Apple paid 50 euros in tax for every one million of profit made outside the US in 2014.

The Commission said Ireland had still not recovered the back taxes one year on.

Regardless of the tax debacle I still love my Amazon Prime account

[Azadina]

Corporations tax evading? How very surprising...

[Deleted]

Corporations tax evading? How very surprising...

Some people on here support it

[Xarkan]

http://www.itv.com/news/2017-10-04/e...in-back-taxes/



Regardless of the tax debacle I still love my Amazon Prime account

in before "The EU is envious of the US and fining Amazon unfairly to pay for socialist healthcare" from those who think tax is a fine

[Azadina]

Some people on here support it

I don't. If I can't purposely tax evade on 3/4 of my income, without being immediately jailed upon discovery, then neither should the "corporations are people".

[Mittens]

Something ought to be done about the many tax haven countries in Europe.

[Deleted]

EU is just bankrupting, blackmailing eastern countries for random reasons they will never comply and get cut off from EU funding is just one way to hide it.

[Gouky]

Taxation is theft

[Total Crica]

Taxation is theft

Nope. Someone has govern for you (read: protect your interests). They are not going to govern for you for free.

[sarahtasher]

EU is just bankrupting, blackmailing eastern countries for random reasons they will never comply and get cut off from EU funding is just one way to hide it.

Ah yeah, that dastardly (((GLOBULIST))) blackmail, in which the blackmailer give you less money...

[h4rr0d]

I don't. If I can't purposely tax evade on 3/4 of my income, without being immediately jailed upon discovery, then neither should the "corporations are people".

Honestly, if they manage to evade taxes, I have no issues with that (as long as their services are cheaper accordingly). What I find appalling is, that they actually get so high tax discounts from local authorities...

[breadisfunny]

Taxation is theft

unless your completely 100% self sufficient refusing to pay taxes is theft.

[Holofernes]

EU is just bankrupting, blackmailing eastern countries for random reasons they will never comply and get cut off from EU funding is just one way to hide it.

Bankrupting because some voices think loudly about not giving eastern europe all the money if they dont comply to european union standards? Actually kicking out most of the poor eastern european states would benefit the eu, the most eu funds go into helping building up appropriate modern infrastructure in the former sovjet region.

your point of view is very INTERESTING to say it diplomatically.

[Annamarine]

Well what it comes down to is likel usual he EU is telling other countries how to apply their tax law. Luxembourg decided the economic benefits from amazon outweighed the tax it would receive. This is going to drive more and more of a wedge as Brussels decides what’s best for everyone else

[ranzino]

I don't. If I can't purposely tax evade on 3/4 of my income, without being immediately jailed upon discovery, then neither should the "corporations are people".

look, it was an agreement between Amazon and the Grand Duchy of Luxembourg. so it was technically not evaded, because the discount was offered by the country.
Amazon is not blamed for it, it was legal.

[Mittens]

Nope. Someone has govern for you (read: protect your interests). They are not going to govern for you for free.

So they are extorting me?

[Total Crica]

They can open a Patreon page like everyone else.

They who? The person needing their interests protected?

[Zelk]

Taxation is theft

breathing air is theft

[Total Crica]

So they are extorting me?

They who? The people working to protect your interests?

[Tomyris]

What is interesting is that Juncker was prime minister when the deal was struck.