EU hits Amazon with several hundred million euro fine
Move follows record 13 billion euro bill handed to Apple
The European Commission will hit Amazon with a bill for Luxembourg back taxes totaling several hundred million euros, the Financial Times reports Tuesday, citing several sources with knowledge of the matter.
A several year-long investigation alleged that state tax breaks given to Amazon by Luxembourg – the hub for the company’s European operations — were illegal.
The order to recover back taxes comes amid tax reform proposals in Washington that aim to lure US multinationals’ foreign profits back home.
The decision marks the fourth time the commission has found against multinationals out of six tax cases launched since 2013. Tax recovery bills have been handed to Apple in Ireland, Starbucks in the Netherlands, and Amazon and Fiat in Luxembourg.