The EU has been busy lately when it comes to levying fines against tech corporations. Google was recently hit with a record-breaking fine for promoting their own shopping services above competitors (and they may get hit with another for anti-competitive behavior related to Android). Apple wasn’t fined, but was ordered to pay €13 billion in back taxes last year in an investigation similar to what Amazon is currently facing. EU Investigators could announce a fine as soon as tomorrow in their investigation into Amazon’s back taxes.
Business Insider speculates that the fine could be several hundred million euros. The EU’s investigation is centering on Luxembourg, where Amazon has set up an intricate web of loopholes and general trickery in order to pay minimal taxes on their operations in Europe.
The investigation has focused on whether Luxembourg broke EU state aid rules by allowing Amazon’s tax-minimising setup. The commission alleged that Amazon shielded its profits from regional taxes by paying royalties inside its own group of companies.
The EU is pretty clear on how that sort of thing happens, because it’s exactly what Apple was doing, and exactly what they got nailed for. It seems like it’s just a matter of completing their investigation, though maybe the investigators should have another talk with Luxembourg — who has previously denied any wrongdoing — while they’re at it, maybe close some of the loopholes that allow corporations to skirt their taxes.
What do you think about Amazon getting hit with a fine from the EU over back taxes? Should corporations be able to hide their profits in order to avoid paying? Tell us what you think in the comment section below, or on Google+, Twitter, or Facebook.[button link=”http://www.businessinsider.com/amazon-fine-millions-back-taxes-european-commission-report-2017-10″ icon=”fa-external-link” side=”left” target=”blank” color=”285b5e” textcolor=”ffffff”]Source: Business Insider[/button]
Last Updated on October 3, 2017.