The EU is investigating Amazon for a potentially illegal tax deal

Amazon jeff bezos

After setting Apple firmly in its crosshairs, the European Commission is now targeting retail giant Amazon’s tax dealings.

In a press release this morning, the Commission announced it’s opened an “in-depth investigation” into the company’s tax status in the tiny country of Luxembourg — home to Amazon’s European subsidiary. Since 2003, Amazon has recorded the majority of its regional profits in the country, but those profits are not taxed there. As with the aforementioned Apple probe, the Commission believes that the favorable tax deal is tantamount to illegal state aid, and will now investigate Amazon and Luxembourg in an attempt to prove that.

So far, Luxembourg has failed to fully comply with requests for further information, but with the Commission turning up the heat, it’s unlikely that either party will be able to hide from the investigation.

Source: Engadget - Read the full article here

Author: Daily Tech Whip

This article is part of our 'News Tiles' service. The site is currently in Beta. When it is fully operational you will be able to search through and arrange the 'Tiles' to display a keyword, product or technology over your chosen time period. For example you would be able to display all of the leading tech articles on the new Kindle Fire, in one spot in real time. You will also have access to our own original reporting and analysis as well as a polished place to post your own thoughts & reviews here, amongst the Daily Tech Whip Community. Please let us know if you have any feedback via the contact form or via Twitter. Don't forget to come back next week and see our full site and claim your name and your own free tech blog.

Share This Post On