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US: Treasury ‘deeply concerned’ by EC’s tax crackdown

 |  October 8, 2017

The US Treasury is “deeply concerned” by the European Commission’s effort to recoup back taxes from American companies, after Luxembourg was ordered to retrieve €250 million (US$293.4 million) from Amazon.

The Commission ruled Luxembourg must collect the multi-million euro bill from the US online retailer following an investigation that found a 2003 tax deal gave Amazon undue tax benefits that amounted to illegal state aid.

The move is part of a broader crackdown on US tech companies’ use of tax loopholes in Europe. The Commission also referred Ireland to the European Court of Justice this week for failing to recover up to €13 billion (US$15.3 billion) from Apple.

A spokesman for the US Treasury said the Commission’s approach to state aid cases was “unfair”, ran contrary to “well-established legal principles” and called into question the tax rule of EU member states.

“While we do not comment on the specifics of any case, the Treasury Department is deeply concerned that the European Commission continues to impose retroactive tax assessments on US companies,” said a US Treasury spokesman.

“Furthermore, the Commission’s unilateral actions threaten to undermine principles of tax certainty and the successful rules-based economic partnership between the Europe Union and the United States.”

The spokesman said the US Treasury will continue to monitor the cases and make clear its objections. EU Competition Commissioner Margrethe Vestager is leading the crackdown for the Commission

Full Content: Evening Express

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