Join 34,000+ Traders & Investors by getting our FREE weekly Sunday Cheat Sheet email. Get key market news and events before everyone else. Click Here to See if you Qualify.
Top European Union court dealt a decisive blow to the European Commission’s attempt to compel Luxembourg to recover 250 million euros (US $272 million) in back taxes from Amazon. The ruling, announced on Thursday, marks not only a setback for Brussels but also a notable defeat for Margrethe Vestager, the EU’s competition commissioner.
The Court of Justice, in its final verdict, stated, “The Commission has not established that the tax ruling given to Amazon by Luxembourg was a State aid that was incompatible with the internal market.” The rejection of the appeal reinforces a prior decision by the EU General Court in May 2021, which found no selective advantage given to Amazon by Luxembourg in the 2003 tax deal.
Vestager, who accused Luxembourg in 2017 of providing illegal state aid to Amazon through favorable tax privileges, faced a tough legal battle. The case centered on whether the tax arrangement constituted illegal “state aid,” providing Amazon an unfair advantage over competitors. Despite the appeal to the EU’s highest legal body, the court upheld the General Court’s decision, affirming that the Commission had not proven its case.
Amazon welcomed the ruling, with a spokesperson stating, “which confirms that Amazon followed all applicable laws and received no special treatment.” This victory for the tech giant, however, sparked criticism from anti-poverty campaigners, particularly Oxfam’s EU tax expert, Chiara Putaturo. She described it as an “early Christmas present” for Amazon and urged the EU to focus on “real” tax reforms, highlighting concerns about companies sidestepping tax bills through loopholes.
Luxembourg, historically known as a hub for multinationals seeking favorable tax environments, played a pivotal role in this case. The decision underscores the broader challenges faced by the EU in defending its tax decisions, as witnessed in past legal battles involving major corporations like Apple and Starbucks.
While this ruling marks a setback for Vestager and the EU in their pursuit of corporate tax accountability, the ongoing legal saga with Apple could potentially offer a different outcome. The European Court of Justice’s final decision on the 13-billion-euro tax case against Apple is anticipated within a few months, with potential implications for the EU’s stance on multinational tax practices.
This Options Discord Chat is The Real Deal
While the internet is scoured with trading chat rooms, many of which even charge upwards of thousands of dollars to join, this smaller options trading discord chatroom is the real deal and actually providing valuable trade setups, education, and community without the noise and spam of the larger more expensive rooms. With a incredibly low-cost monthly fee, Options Trading Club (click here to see their reviews) requires an application to join ensuring that every member is dedicated and serious about taking their trading to the next level. If you are looking for a change in your trading strategies, then click here to apply for a membership.