EU Pressured to Recover Tax from Amazon by Luxembourg


Luxembourg is arguing that a European Union order to recuperate roughly 250 million euros ($295 million) in back taxes from Amazon, stating it complies with EU state aid regulators’ conclusion that the U.S. online merchant had received specific treatment.

The allure to the Luxembourg-based general court, Europe’s second-highest, comes two months after the European Commission accused the Grand Duchy of committing prohibited tax advantages to Amazon and rescuing the business from paying taxes on nearly 3 quarters of its gains.

“Luxembourg Considers that the commission hasn’t established the presence of a selective benefit,” its finance ministry said in a statement. “Additionally, Luxembourg doesn’t discuss the Commission’s evaluation in terms of transfer pricing.”

Amazon employs 1,500 people in Luxembourg, which makes it among the largest companies in the nation of half a million.

Luxembourg has also appealed from a 2015 judgment ordering it to regain up to 30 Million euros in back taxes from Italian carmaker Fiat. ($1 = 0.8475 euros)