A PYMNTS Company

EU: Amazon caught in Commission’s tax probe web

By  |  October 7, 2014

The European Commission’s probe into member states’ tax agreements with foreign companies has expanded as reports say Amazon is now under investigation.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Amazon is now facing an in-depth investigation into its tax agreements with Luxembourg, according to an unnamed source. The Commission suspects that Amazon’s 2003 agreement with Luxembourg could possible be anticompetitive and a violation of state aid law, the source said.

    The Commission announced it is looking into similar tax agreements made between Apple and Ireland, Starbucks and the Netherlands, and Fiat and Luxembourg. Foreign corporations have been using mergers to relocate their taxes abroad to the EU for cheaper rates, say reports, and authorities are concerned the tactics could be anticompetitive.

    The Commission says that such tax avoidance and evasion has cost the EU about $1.3 trillion a year.

    Full content: Live Mint

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.