Things could be getting sticky for Amazon: the European Union (EU) has decided it wants to collect some taxes after all.
Margrethe Vestager, the EU’s competition commissioner, today announced plans to bill the monolithic online firm £222 million in back taxes – duties that were cannily dodged via a ‘sweetheart’ deal with the financially dubious Luxembourg, allegedly.
The move comes in the wake of a European Commission (EC) investigation into Amazon’s relationship with Luxembourg and tax, which began in 2003.
In the past, the EC has said that it believes Luxembourg’s arrangement with Amazon ‘constitutes state aid’.
However, the company has, unsurprisingly, denied any special treatment, claiming that it is ‘subject to the same tax laws as other companies’ that operate in the small, fiscally cloudy state.
Over the summer, Amazon’s owner, Jeff Bezos, became the richest man in the world. I’m sure you’ll all join me in sparing a thought for him and his money during this uncertain time.
Today’s poll. Do you:
- Think that large, highly profitable firms should pay their fair share so that things like local government, healthcare and public services can continue to operate, or
- Prefer getting cheap books delivered next day?