by Christopher Freeburn | November 13, 2012 11:22 am
France has hit Amazon (NASDAQ:AMZN) with a bill for $252 million in back taxes.
The French tax authority says that the Internet retail giant has transferred sales through Luxembourg in order to reduce taxes. The tax bill sent to Amazon includes interest and penalties for the alleged conduct, Reuters noted.
Luxembourg provides tax incentives to attract international companies to establish operations in the tiny nation.
The tax bill, which was imposed in September, covers the calendar years 2006 through 2010. Amazon has indicated that it plans to fight tax assessment.
Shares of Amazon slipped fractionally in Tuesday morning trading.
A number of U.S. companies are facing questions over profit and tax reporting in Europe. French tax authorities are also auditing Google‘s (NASDAQ:GOOG) European operations.
Last month, British lawmakers called for an investigation of Starbucks (NASDAQ:SBUX), accusing the coffee shop chain of reporting losses on its U.K. operations, while telling investors that its U.K. unit was profitable.
Source URL: http://investorplace.com/2012/11/why-amazon-is-being-ordered-to-pay-252m-to-the-french/
Short URL: http://investorplace.com/?p=259283
Copyright ©2013 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.