The Luxembourg government today announced that it will appeal in General Court a European Commission decision that concluded that Luxembourg granted illegal State aid to Amazon’s Luxembourg subsidiary through a private tax ruling.
The Commission’s decision, issued October 4, ordered Amazon to pay Luxembourg back taxes of about €250 million (USD 294 million) on account of the tax ruling, which the Commission said sanctioned royalty payments between Amazon affiliates that were not arm’s length.
“Luxembourg believes that the Commission has not established the existence of a selective advantage within the meaning of article 107 TFUE. Furthermore, Luxembourg does not share the Commission’s analysis with regard to transfer pricing,” Luxembourg’s Ministry of Finance said in a statement.
Luxembourg is already suing the EU Commission in General Court over its decision to order recovery of State aid allegedly granted by Luxembourg to Fiat through a private tax ruling. Luxembourg tax rulings granted to McDonald’s and Engie are also under EU Commission scrutiny for State aid violations.
Moreover, the Commission is also embroiled in a similar court battle with the Netherlands involving a Starbucks private tax ruling and with Ireland regarding private tax rulings granted to Apple.
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