The Strategist

EU court cancels Amazon's fine for tax evasion

12/15/2023 - 02:05

Amazon received support from the Court of Justice of the European Union in its disagreement with the European Commission over tax avoidance.

Global Panorama
Global Panorama
As a result, the American company is ultimately liberated from its need to reimburse the European authorities for €250 million.

Back in 2017, the European Commission decided to impose fines on Amazon. The European Commission contended that taxes on over three-quarters of the earnings made by the American company in Europe were left unpaid because of unauthorized tax deductions. After filing an appeal, Amazon was granted a favorable ruling by the European Court of General Jurisdiction.

The European Commission failed to demonstrate "an undue reduction in the tax burden" for Amazon's Luxembourg division, according to the court.