The European Commission in its 2017 decision said Amazon paid no taxes on almost three-quarters of its profits from EU operations due to a Luxembourg tax arrangement allowing it to channel profits to a holding company tax-free.
The EU antitrust watchdog equated the tax deal to illegal state aid. However, a lower tribunal in 2021 scrapped the EU decision, dealing a blow to EU competition chief Margrethe Vestager’s crackdown on preferential deals.
“The Commission erred in deciding that Luxembourg had granted unauthorised state aid to Amazon in the form of tax advantages,” Advocate General Juliane Kokott at the EU Court of Justice (CJEU) said in a non-binding opinion.
“The reference system relied on by the Commission in order to review whether there was a selective advantage, namely the OECD Transfer Pricing Guidelines rather than Luxembourg law, was incorrect,” she said.
Kokott said the General Court’s judgment annulling the EU decision should be upheld.
Discover the stories of your interest
The CJEU, which normally follows such recommendations in four out of five cases, will rule in the coming months. The case is C-457/21 P Commission v Luxembourg and Others.
For all the latest Technology News Click Here
