BRUSSELS – Luxembourg has decided to appeal the European Commission’s order for online commerce giant Amazon to pay some $295 million in back taxes to the Grand Duchy following in a crackdown on unfair tax advantages, the Luxembourgish finance ministry said on Friday.
Luxembourg’s government said it believed the Commission had not established the existence of the illegal tax benefits that the European Union’s competition chief claimed had allowed Amazon to avoid taxation on some three-quarters of its profits.
“This appeal seeks to obtain legal certainty, and does not put into question Luxembourg’s strong commitment to tax transparency and the fight against harmful tax practices,” the government statement added.
Amazon came under the spotlight during a Commission campaign to tackle advantageous taxation packages offered by EU member states in a bid to attract multinational company headquarters.
In a similar ruling, United States tech giant Apple was ordered to pay $13 billion in back-taxes to Ireland.