Amazon is celebrating because they marked their spot by winning a major case this Wednesday. Amazon has won a lawsuit against an E.U. order regarding payment of 250 million euros for back taxes to Luxembourg in a different competition chief Margrethe Vestager’s movement versus advantageous deals.
They won because the bloc could not showcase that Luxemburg already had provided the U.S. online retailer specialized treatment in breach of rules and regulations that the state made.
Amazon has its European Headquarters in Luxembourg, the same place as the General Court of the European Union. It repudiated the claim against the online retailers advantaging of a good tax deal.
Last year Apple also went through the same kind of claim against Vestager. Vestager has tried targetting both the companies Apple and Amazon to mark out taxes deals used by different E.U. states in a campaign to get attention from all the big companies worldwide. Although, the agreement was stated unfairly by Commission.
Luxembourg’s E.U. judge says,” the Commission, however, did not explain to the legal rule that there was an extreme lowering of the tax burden of a European subsidiary of the Amazon group.
“After standing for a long time and following all the relevant laws, still we received no special treatment,” Amazon said while welcoming the ruling.
While Vestager said she would go through the ruling sincerely before she decides to appeal or not to Europe’s top court. But, still, it was not too much of a bad day for Vestager. Nevertheless, the ruling that happened on Tuesday left Vestager astonish because she just experienced and enjoyed only a mixed track record in her efforts to crack down what she claims as just some sweetheart tax deals between big companies and the E.U. countries.
On Tuesday, there was one more case that said, The general Court asked a french service, Engie, to pay 120 million euros as back taxes to Luxembourg. While Amazon won a case, a French service Engie lost their case and had to pay 120 million euros back taxes to Luxembourg.
Still, Everyone was waiting for Amazon’s decision, that different groups to living on multinationals for higher taxes criticized.
A tax expert from Oxfam E.U. says, ” It was a blow at today’s rule.
” And, again, the case studies are not solving the high-scale tax-dodging problem.”
The amount of money at stake in Amazon’s decision is minimal if we compare this amount to the billions of dollars earned by the online retailers each quarter. But, their decision will surely help companies to appeal the taxes scrutinies again.
Last Year’s Europe’s revenue had an addition of 44 billion euros that were, and that was possible because of the ample amount of online shopping people did during the pandemic; still, the company paid no tax to Luxembourg.
However, Amazon claims to pay all the taxes and the related expenses that it earns from Germany, France, U.K. Spain and Italy, where it has its branches established.
Some places like Belgium, Luxembourg, the Netherlands and Ireland have changed their tax methods and has encouraged the Organization for Economic Cooperation and Development (OECD) to
try to achieve a global deal on why big companies are taxed. Vestager successfully did this all to make these places do the same. After researching a little, OECD said that the global deals have never reached such heights.
While European Commission was ruling in 2017, it thumped down this Wednesday when Amazon won the case against the appeal for the back tax claimed by Luxembourg and allowed it to send profits to a stopping company tax-free.
When in 2018, there were decisions on Engie occurring where the E.U. announced the agreement with Luxembourg Officials reduced its tax load, which means a tax rate of 0.3% was paid for a decade on profits Luxembourg.