Amazon No Longer Faces a $300 Million Tax Bill
EU Court Rules in Amazon’s Favor
Amazon (AMZN) will avoid paying $300 million in taxes after a court in the European Union annulled the tax bill. The decision is seen as a victory for the ecommerce giant which has been in conflict with the European Union about its taxes for years.
In 2017 the European Commission, the EU’s antitrust authority, ordered Amazon to pay the taxes in question to Luxembourg. However, in the ruling Wednesday, the court sided with Amazon, saying regulators did not prove that the tech company received an illegal advantage from Luxembourg.
A Setback for EU Regulators
The ruling is a blow to Margrethe Vestager, Executive Vice President of the commission, who has been working to reign in perceived excesses by tech companies including Amazon, Apple (AAPL), and Google (GOOGL). The Amazon tax ruling could hurt her efforts to dismantle what she contends were so-called sweetheart tax deals between large multinational companies and some EU countries including Luxembourg and Ireland.
Vestager also wants to collect back taxes from Starbucks (SBUX), Nike (NKE), and other large corporations. Vestager’s office is studying the judgment and considering possible next steps. The decision could be appealed to the EU’s Court of Justice.
Amazon Cheers EU’s Ruling
Amazon welcomed the ruling by the EU court, saying it did not receive special tax treatment in EU countries. Since the initial ruling in 2017, Amazon has overhauled its tax structure. Last year it argued the EU’s decision contained legal and factual mistakes. Luxembourg joined Amazon in the appeal. In the ruling, the General Court largely backed Amazon’s assertions.
Amazon may have won the tax battle with the EU, but that does not mean regulators in Europe are backing down any time soon. There are still a number of unanswered questions surrounding how the battle between tech and global regulators will play out.
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS21051203
All your finances.
All in one app.
App Store rating
