Amazon Tax Probe: AMZN Now Facing EU Scrutiny in Luxembourg

Amazon claims it has done nothing illegal

Amazon (AMZN) is facing a tax probe by the European Commission (EU) concerning its work in Luxembourg.

amzn-amazon-luxembourg-amazon-tax-probeThe EU believes that Luxembourg may have broken the law by giving Amazon special treatment. It may have been that the country offered the company lower tax rates. This isn’t illegal, but making corporate deals that aren’t available for all companies is, reports The New York Times.

Amazon claims that it wasn’t given any special tax treatment by Luxembourg and that it faces the same tax laws as other companies. Luxembourg has also said that it plans to fully cooperate with the EU’s investigation, NYT notes.

Some tax experts have suggested that the EU may be targeting America companies following the revelation that the NSA was spying on European citizens. It’s also thought that the EU could be targeting certain countries in an effort to force them to change their tax codes, reports The Wall Street Journal.

AMZN shares were down slightly as of Noon Tuesday.

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Article printed from InvestorPlace Media, https://investorplace.com/2014/10/amzn-amazon-luxembourg-amazon-tax-probe/.

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