EU Court to rule on May 12 in Amazon Appeal of Order to Pay EUR 250 Million in Back Tax

Europe’s second-highest court will rule on May 12 regarding Amazon’s appeal for an EU order to pay about EUR 250 million ($ 300.5 million or about $ 2,226 crores) in taxes back to Luxembourg.

The European Commission in its 2017 decision stated that Grand Duchy has protected the U.S. online retailer from paying tax on about three-quarters of its revenue from EU operations by allowing it to send profits to a tax-exempt holding company.

Luxembourg has also filed an application with the Supreme Court of Luxembourg, claiming that its Amazon treatment is legal because it does not give the company a choice.

Amazon has its EU headquarters in Luxembourg and employs 1,500 people there, making it one of the world’s largest employers of half a million.

The General Court will again rule on May 12 regarding the challenge of using France Engie in the 2018 European Commission’s directive to pay EUR 120 million (approximately Rs. 1,068 crores) tax to Luxembourg.

Officials said a plan by the Luxembourg authorities had reduced Engie’s tax burden, which meant paying 0.3 percent of corporate taxes on certain profits in Luxembourg for nearly a decade.

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