The Commission did not fine the company, but ordered it to return about 250m euros to Luxembourg, as well as interest. The European Commission (EC) said the US online merchant Amazon has received tax breaks from Luxembourg for a total of about 250 m euros. According to the European Union rules on state aid, this is illegal and the country is told that the sum should be reimbursed, writes Engadget. Amazon has agreed to pay the simplified taxes to interest. Jeff Bezos's company has managed to pay considerably less taxes. "Following an in-depth investigation commenced in October 2014, the Commission found that a tax decision issued by Luxembourg in 2003 and extended in 2011 has lowered the tax paid by Amazon there without any valid justification", commented EU Commissioner Margrete Vestagger.
Although the Commission does not fine Amazon, it has ordered the company to reimburse the simplified amount "in order to eliminate the distortion of competition created by the aid provided". The Commission has calculated the difference between what the company has paid and what Amazon actually owes to Luxembourg. The amount is about 250 million euros ($ 294 million), and the interest is also due. The Tax Administration of the Kingdom is obliged to determine the exact amount of unpaid tax. Recall that at the end of June this year, the EC fined another major US technology company - Google -
with EUR 2.42 billion after a seven-year investigation of allegations that the technology giant has abused the monopoly used in internet search. The fine remains the largest imposed so far by the EU executive.
Today, the EC has announced that the European Court will consider another case related to tax concessions granted by states to large companies. This is the technology giant Apple, which has received preferences from Ireland, and has thus managed to avoid tax payments of 13 billion euros.
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