Economy & Politics

Amazon wins against Brussels on its tax rebates

European justice validated on Wednesday the tax rulings obtained by the American giant in Luxembourg, disavowing the Commission which saw illegal state aid in the amount of 250 million euros which it had demanded repayment.

European justice validated on Wednesday the tax rulings obtained by the American giant in Luxembourg, disavowing the Commission which saw illegal state aid in the amount of 250 million euros which it had demanded repayment.

(Jmh with AFP) – The Luxembourg state will ultimately not have to claim 250 million euros from Amazon overpayment, announced Wednesday the European Court of Justice of the European Union. The EU tribunal, based in Kirchberg, concluded Wednesday that “none of the findings set out in the contested decision is sufficient to demonstrate the existence of an advantage (…) so that it is necessary to cancel it as a whole, ”according to the ruling.


ARCHIV - 12/17/2020, Brandenburg, Schönefeld / Ot Kiekebusch: Der Schriftzug des Unternehmens am Brandenburger Sortierzentrum des Versandhandels Amazon. (zu dpa

European justice rules Wednesday on tax exemptions granted by Luxembourg to the online sales giant Amazon and to the energy company Engie, pinned as illegal state aid by Brussels which ordered the reimbursement.


A judgment that does not definitively close this case, since the European executive has the possibility of appealing to the Court of Justice of the European Union (CJEU), as it had done after its resounding defeat against Apple the year latest. As a reminder, Brussels estimated that Amazon had benefited from illegal advantages, thanks to an agreement of 2003 (renewed in 2011) allowing it to evade the tax on nearly three quarters of its profits in this country which shelters its headquarters. European.

Either an estimated total of 250 million euros of undue advantages and had ordered their reimbursement in October 2017. Luxembourg and Amazon had filed a lawsuit. In a statement released Wednesday, the Ministry of Finance “welcomes the judgment rendered by the court of the European Union” in the Amazon file and “takes note” of the decision also made this Wednesday with regard to the energy company Engie whose dubious financial arrangements have been analyzed as indeed being an undue advantage.


Lupe Taxes Taxes

Under discussion since 2017 within the OECD, the measure returned to the forefront last week with the official support of the Biden administration. If the Grand Duchy ensures that it is going “in the right direction”, the concrete implementation of the measure promises to be difficult.


For the ministry headed by Pierre Gramegna (DP), this judgment will be analyzed “with all due diligence and reserves all its rights”. In other words, does not deny the possibility of appealing the decision to the CJEU. And the officials of the rue de la Congrégation recalled that “the judgments do not in any way call into question Luxembourg’s commitment to transparency in tax matters and the fight against tax evasion practices” and that ” the country will continue to participate actively and constructively in the ongoing discussions on reform of international taxation ”.


Tags

Related Articles

Back to top button
Close
Close