Tuesday, Sep 23, 2014Tuesday, Sep 23, 2014
World
 

European Union targeting Amazon tax deals in crackdown

Published on Jul 4, 2014 9:11 PM
 
The European Union is looking to add online shopping giant Amazon to a wide-ranging probe into preferential tax deals offered to multinationals by three member states, a report said on Friday, July 4, 2014. -- PHOTO: AFP

BRUSSELS (AFP) - The European Union is looking to add online shopping giant Amazon to a wide-ranging probe into preferential tax deals offered to multinationals by three member states, a report said on Friday.

The Financial Times said European officials have requested Luxembourg provide documents relating to Amazon's tax affairs, putting it in line to join Starbucks, Apple and Fiat as targets of the investigation.

The probe announced last month is to determine whether tax arrangements offered by Ireland, Netherlands and Luxembourg give the companies an unfair competitive advantage and therefore amount to illegal state aid.

The European Union has no jurisdiction over national tax policies, a cherished prerogative of member states, so the probe is strictly limited to rules governing free competition.

 
If you are not a subscriber, you can get instant, unlimited access here

Videos