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EU: Multinational tax probe hits Amazon

 |  September 16, 2013

Amazon is the latest company to come under threat of a European Commission tax investigation in part of the watchdog’s look into tax breaks for multinational companies.

Reports say Amazon has been subject to scrutiny within the UK for its tax affairs. The Commission recently sent letters to various multinational firms operating in low-tax EU member states, including the Netherlands, Ireland and Luxembourg.

EU law says member states can establish their own taxes but must give equal tax treatment to all companies.

In part of a wide-scale crackdown on tax evasion, the Commission is reportedly looking into the potential anticompetitive effects of such tax breaks for companies operating in such states, though the watchdog assured that it was too early to launch a formal probe.

Under EU law, tax breaks fall under state aid law.

Full Content: Independent

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