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Amazon ordered to repay €250m by EU over 'illegal tax advantages'

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James Talbot
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Amazon has been ordered to repay €250m (£222m) by EU authorities, after a ruling that the technology company benefited from illegal and unfair state aid from Luxembourg.

The European commission also announced on Wednesday that it plans to take the the Irish government to the European court of justice (ECJ) over its failure to collect €13bn in unpaid taxes from Apple, in relation to an earlier ruling.

Margrethe Vestager, the EU commissioner in charge of competition, said Luxembourg’s “illegal tax advantages to Amazon” had allowed almost three-quarters of the company’s profits to go untaxed, allowing it to pay four times less tax than local rivals.

“Member states may not grant selective tax concessions to multinational groups to which other companies do not have access.”

The commission said Amazon had benefited from an illegal tax deal granted by the Luxembourg authorities that allowed the company to artificially reduce its tax bill by €250m from 2006 to 2014.

In a separate announcement, Vestager announced she was appealing to Europe’s highest court to enforce an earlier ruling against Apple to ensure the iPhone maker repaid €13bn in back taxes.

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