São Paulo – The headquarters of the Amazon in Luxembourg is being investigated by distortions in taxes. The European Union is ascertaining contracts between the multinational and the European country which gave the company a competitive advantage over its competitors.
The European Commission, which is responsible for creating the legislation of EU business, believes Amazon’s European subsidiary paid tax based on favorable treatment, equivalent to an unlawful state subsidy.
In a 23-page document states that Luxembourg has offered many low taxes, neglecting the risk of European Amazon headquarters, bypassing international standards and distorting the market of the European Union.
Taxes paid by Amazon were less than 1%, which is equivalent to approximately EUR 23.3 million in 2013, the year that Amazon operated a volume of 13.6 billion euros.
In May, tenants threatened to boycott Amazon in England by the same problem: tax less. In 2013, the company in England paid only 4.2 million pounds in taxes, despite having generated revenue of 4.3 billion pounds.
The low taxes in Europe were only possible because payment for purchases across the continent was directed to the subsidiary in Luxembourg.
In agreement quite friendly, Luxembourg also appointed the director of the Amazon tax, Bob Comfort, “honorary consul in the Seattle area,” title given for bringing giant American technology to the small European country.
Other cases
The contracts were signed in 2003 by Jean-Claude Juncker, prime minister of Luxembourg then. He is currently president of the European Union.
Amazon is just one of the companies investigated, after word leaked out that many multinational companies paid minimum tax in the country. Under the 18 years of management Juncker, 340 companies failed to pay taxes owed, according to research.
The committee is also investigating other cases, the contracts between Apple and Ireland, Fiat and Luxembourg and the Starbucks and the Netherlands.
Topics: Amazon , Business , Business , American companies , Internet companies , Online Stores , Taxes , Leo , Luxembourg , rich countries , Euro pe , EU
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