EU investigates Amazon's tax affairs

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Nick Huber
Freelance journalist
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Amazon's tax arrangements have come under renewed scrutiny after European officials demanded that Luxembourg hand over documents relating to the online retailer's tax affairs, the Financial Times reported.

The European Union's Competition Commission is also investigating the tax affairs of Apple, Starbucks and Fiat's financial arm.

The EU has sent a request for information to the Grand Duchy, where Amazon’s main European operating company is based, about whether its decisions on corporate tax complied with state aid rules.

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09th Jul 2014 00:20

Very sweet deal

Just hearsay, but I have heard that a certain Californian company negotiated a special VAT rate of below 15% in Luxembourg, being a blended VAT rate for electronic sales plus publishing services (3%).  Seems right for the EU to look at this and of course, from 2015, the UK will enjoy the largesse of the VAT on these sales.

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09th Jul 2014 14:16

Scrap corporation tax!

Corporation tax has become almost optional if you are international and smart. Millions are paid to adviser worldwide to circumvent these taxes so scrap them (4.8% of UK tax take?)and replace them with a registration fee based on turnover. For the UK the business generated would be huge, every tax haven would become irrelevant and when you have a chance to be located in a juristriction where the courts and rule of law works well you have a good chance of substantial business and jobs being created.

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09th Jul 2014 21:29

Please explain

Amazon's latest accounts show that its tax-efficient structure in Luxembourg reduced the company’s overall tax rate by 8% last year to 31.8%.'

I'm sorry, but I don't understand this statement. What is 'overall' tax rate? Luxembourg does not have a 39.8% CT rate .... does it? If so, why is it better to transfer tax liabilities there?

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11th Jul 2014 12:18

True culprit

And who was at least in part instrumental in devising the legislation that enables Luxemburg to host all of these dodgy tax deals - step forward please Mr Juncker and receive the praise that is due to you for this piece of international tax sabotage that so disadvantages your fellow EU members.

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