The second highest court in Europe will appeal an EU ruling on Amazon.com on May 12, which requires the EU to pay Luxembourg approximately 250 million euros (US$300.5 million, or approximately 22.26 billion rupees) in taxes.
In its 2017 decision, the European Commission stated that the Grand Duchy allows U.S. online retailers to transfer their profits tax-free to holding companies, thereby avoiding taxation on nearly three-quarters of their EU business profits.
Luxembourg also appealed to the general court in Luxembourg, claiming that its treatment of Amazon was legal because it did not give the company a selective advantage.
Amazon has an EU headquarters in Luxembourg and 1,500 employees in Luxembourg. It is one of the largest employers in countries with 500,000 euros.
The General Court will also object on May 12 to the French utility company Engie’s 2018 order to the European Commission, which requires the repayment of 120 million euros (approximately 10.68 billion rupees) in taxes to Luxembourg.
The regulator stated that the arrangement with the Luxembourg authorities artificially reduced Engie’s tax burden, which meant that it had paid an effective corporate tax rate of 0.3% for some of Luxembourg’s profits for about ten years.
Luxembourg also appealed the decision.
These cases are T-816/17 Luxembourg v. Commission and T-318/18 Amazon EU v. Commission, and T-525/18 Engie Global and T-516/18 Luxembourg v. Commission.
Thomson Reuters 2021 ©