Online retail giant Amazon has been dragged into a major tax crackdown in the European Union as authorities demanded that Luxembourg hand over documents relating to firm’s tax affairs.
The EU’s competition commission has sent a request for information to the Grand Duchy, where Amazon’s main European operating company is based, about whether its decisions on corporate tax complied with state aid rules, Financial Times reported, citing people familiar with the matter.
“We are looking into what kind of arrangement Luxembourg has with Amazon,” an EU official was quoted as saying. Another official said Brussels was conducting fact-finding missions in a number of EU countries as part of a drive to clamp down on “sweetheart” tax deals with large companies.
With the move, Amazon has joined companies such as Apple, Starbucks and Fiat that have drawn greater scrutiny from Brussels over their tax arrangements.
A request for information is the first step that could lead to a full investigation, FT noted.
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