EU: Amazon to pay more tax

The EU has ordered Amazon to reply €250m it received in a sweetheart deal in Luxembourg.

The deal saw three quarters of the company’s profits untaxed and allowed Amazon to slash its tax bill. Two Amazon subsidiaries (Amazon EU group and Amazon Europe Holding Technologies) were incorporated in Luxembourg. Amazon EU group transferred 90% of its operating profits to the holding company where the profits were not taxed.  In effect, Amazon only paid 7.25% tax – the national rate in Belgium was 29%.

EU member states risk multimillion-euro fines when they fail to act on EU competition rulings.

The EU has also announced it will be taking the Irish government to the European Court of Justice over its sweetheart deal with Apple.

Sources: The Guardian; BBC