#AceFinanceNews – BRUSSELS:Jan.17:The EU commission on Friday (16 January) published details of its ongoing anti-trust case into Luxembourg’s tax deal with the global retailer Amazon, a deal secured while commission chief Jean-Claude Juncker was Luxembourg PM.
The 23-page document details the reasons why the EU commission thinks the tax deal may amount to illegal state aid as well as the complex company structure allowing it to put most profits into a non-taxable entity.
The commission says the Luxembourg tax authorities accepted a "cosmetic arrangement" that was "unnecessarily complex" and that was approved in a very short period of time (11 days). It was never revised in the 12 years it has been in force.
The tax deal allowed the European branch of Amazon – which had a net revenue of €13.6 billion in 2013 – to pay as little as €60 million in taxes per year.