The European Union court has ruled in favor of Amazon, a US-based e-commerce company, stating that they do not have to pay approximately 250 million euros in back taxes. This decision is a setback for the EU’s attempts to address corporate tax avoidance.

The decision made by the highest court in the EU is conclusive, concluding the lengthy legal dispute over tax agreements between Amazon and the government of Luxembourg. This serves as another hindrance for antitrust leader Margrethe Vestager’s efforts to regulate.

The 2021 ruling by the Court of Justice upheld a decision made by lower court judges in favor of Amazon. The European Commission, the executive branch of the EU, failed to provide sufficient evidence to prove that Amazon had received unlawful state aid.

The EU Court of Justice has declared that the tax agreement between Luxembourg and Amazon was not considered a form of State aid that violated the internal market. This statement was made in a press release by the court.

Amazon expressed satisfaction with the decision, stating that it affirms their compliance with all relevant laws and lack of preferential treatment.

The company stated that they are excited to continue prioritizing the satisfaction of their customers throughout Europe.

The commission stated that it will thoroughly examine the ruling and evaluate its consequences.

In 2017, Vestager accused Amazon of benefiting unfairly from reduced taxes in Luxembourg since 2003, where its European base is located. She stated that this resulted in nearly 75% of Amazon’s EU profits going untaxed.

The European Union has targeted agreements made between individual countries and corporations that entice foreign multinational corporations to set up their headquarters within the EU. This practice resulted in competition among EU member states and allowed multinational corporations to manipulate them against each other.

Source: wral.com