Tech

Amazon wins appeal on EU tax bill over $ 300 million

Amazon..

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com Inc. has given a new blow to the European Union’s efforts to collect more taxes from big tech companies when Brock’s second-highest court endorsed the company. $ 300 million tax..

On Wednesday, the EU Court invalidated the 2017 decision from the European Commission, the EU’s highest antitrust authority.

The court supported Amazon in its decision, saying EU regulators could not prove that the company had gained illegal profits from a tax ruling issued by Luxembourg, and the Commission’s analysis “in some respects.” It was inaccurate. ”

Amazon said it welcomed the decision “in line with the long-standing position that Amazon was not treated specially in accordance with all applicable laws.”

The ruling is a serious blow to Marguerite Vestager, Vice Chairman of the Commission, which is leading a campaign to curb over-suspicion by some of the world’s largest tech companies, including Amazon.

Apple Co., Ltd.

And

Alphabet Of a corporation

Google.

Mr. Bestagger had already been accused by the same court in a similar case.General court Overturned her 2016 order Ireland will have to recoup about € 13 billion in taxes from Apple. Since then, Mr. Vestager has appealed the case to the EU’s Supreme Court, the Judiciary Court.

Mr. Vestager’s tax proceeding was one of her first major remedies for tech companies in her role in conducting EU competition enforcement. She later fined Google three times on suspicion of abuse of control the company is suing.For the past few months, she too Criminal accusation of formal antitrust violations Against Amazon and Apple over the treatment of rivals.

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The Commission’s representative did not immediately respond to the request for comment. An appeal against Wednesday’s decision is possible in the EU Court of Justice.

Both Amazon and Apple tax proceedings are based on aspects of EU law aimed at creating a fair competition for businesses across the block by prohibiting the government from giving them some kind of state aid. I have.

Wednesday’s decision is Mr. Vestager’s efforts to use these rules to chase what she claims to be a lovers tax deal granted to a small number of EU-based multinationals, including Luxembourg and Ireland. May limit.In addition to Amazon and Apple tax proceedings, Vestagger ordered companies to repay taxes, including:

Starbucks Co., Ltd.

,

Nike Co., Ltd.

Fiat Chrysler, now part of Stellantis NV.

So far, Mr. Vestager’s tax proceeding records have been mixed.General court Apple and Starbucks allies In their appeal, they are with Mr. Vestager in the proceedings against Fiat.

With Vestagger’s silver lining on Wednesday, a general court ruled in her favor,

Engie SA,

A French state-owned energy company decides to order Luxembourg to collect unpaid taxes of around 120 million euros. The case involved a significantly different type of tax system.

In the case of Apple, the General Court invalidated the tax decision, saying the Commission did not meet the legal standards that indicate that Apple had been treated illegally and specially.

Amazon’s tax bill has been revoked, at least in part, as an international consultation aimed at shifting Taxation on big tech companies I’m making progress. These talks, led by the Organization for Economic Co-operation and Development, I was stuck, Several countries have led major digital companies, including Amazon, to impose their own unilateral taxes on complaints from technology industry groups.

Wednesday’s decision is Structure used by Amazon in Europe As part of a series of transactions known internally as Project Gold Crest, named after the Luxembourg national bird.

Under this plan, the company concentrated all e-commerce sales in the EU through an operating company called Amazon EUSARL. However, the company paid a large amount of royalties each year to a parent company not registered in Luxembourg called Amazon Europe Holding Technologies SCS, reducing the taxable income of the operating company.

In a 2017 decision against Amazon, the Commission claimed that the company had improperly inflated royalties to eat up the profits of the operating company. The Commission said Amazon’s method of calculating its tax base in Luxembourg is based on the 2003 tax transaction, which was extended in 2011. The Commission has ordered Luxembourg to collect € 250 million of unpaid taxes from Amazon over eight years.

Amazon, which subsequently changed its tax system, claimed in a general court in 2020 that the Commission’s decision was full of legal and de facto errors, the payment of which complies with international tax principles, and Luxemburg. Tax judgment is an advantage of an e-commerce company. Luxembourg has also appealed.

Amazon stated in an appeal filed in general court in 2020 that the Commission’s decision was full of legal and de facto errors, the payment of which complies with international tax principles and Luxembourg tax affairs. The ruling claimed that it did not bring any benefits to e-commerce-a commerce company. Luxembourg has also appealed.

In Wednesday’s ruling, the general court generally agreed with Amazon. The Commission ruled that the royalties paid for the company’s use of intellectual property did not show, among other mistakes, that Amazon’s taxes were lower than it would be paid under normal tax law. ..

As part of that, the Internal Revenue Service has asked Amazon for an additional tax of $ 1.5 billion on the same series of transactions, but the U.S. Tax Court said. Supporting Amazon in 2017The IRS has made arbitrary decisions and has abused its discretion in some cases. The US Court of Appeals later upheld the decision.

Write to Samshekner sam.schechner@wsj.com

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Amazon wins appeal on EU tax bill over $ 300 million

Source link Amazon wins appeal on EU tax bill over $ 300 million

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