We need your help now
Support from readers like you keeps The Journal open.
You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.
If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.
Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
By continuing, you are indicating that you accept our Terms of Service and Privacy Policy.
EU REGULATORS TODAY said they believe Luxembourg gave illegal tax breaks to Internet shopping giant Amazon, renewing pressure on European Commission chief Jean-Claude Juncker over arrangements made when he was prime minister.
The European Commission’s preliminary findings into Amazon’s deals with the tiny duchy were the latest in a widening anti-trust probe by Brussels into sweetheart tax deals between major companies and several countries.
They also come months after the “Luxleaks” tax scandal, in which investigative journalists uncovered details of tax breaks for dozens of major firms during Juncker’s 19 years as premier of Luxembourg.
The Commission, the EU’s powerful executive body responsible for policing its internal market rules, was today revealing the formal argument for opening the investigation into Amazon’s 2003 deal with Luxembourg.
The probe looks at whether the tax breaks can be considered illegal state aid, which gives companies an unfair advantage and breaks EU rules designed to protect consumers and competitors.
“The Commission’s preliminary view is that the tax ruling… by Luxembourg in favour of Amazon constitutes state aid,” the Commission said.
It said there was “no indication at this stage that the contested measure can be compatible with the internal market”.
And then there’s Apple and Ireland
The EU has opened similar probes into US tech icon Apple’s deals with Ireland, coffee-shop chain Starbucks with the Netherlands and Italian automaker Fiat, also with Luxembourg.
But Finance Minister Michael Noonan has said the case against Ireland was “weak” and that the country would fight any adverse finding against it through “every legal avenue open”.
He believed Ireland had been unfairly “caught in the crossfire” of sniping between big EU countries and the US on multinationals’ tax avoidance.
Additional reporting Peter Bodkin
To embed this post, copy the code below on your site
Said it before and I say it again. How come the UK and all those Financial Services companies aren’t under investigation. Or France and all the companies there, no way I believe French companies paying the extraordinary taxes that are usually reported.
Rules for the Big countries and rules for the rest of us.
These bureaucrats seem to dislike big successful multinational companies such as Amazon, Apple and Google. Maybe they’re worried that the CEO’s of those companies are more powerful than top politicians.
If we don’t like a company we can all stop buying their products. If we don’t like bureaucrats we have to wait years for an election and hope for something different.
Make that American companies that they don’t like!
Or lichtenstein the nice cost relationship with Germany and Austria’s wealthy.
But no sure Ireland is the problem……….
Yes the only ones safe are the Germans and the French with the latter having a greater tax break culture than Ireland
They don’t dislike them, they’re pissed because they set up in Ireland and not France, UK or Germany
Time to get out of this EUSSR circus.
I don’t care what happens as long as large multinationals pay what they are supposed to. We are not talking about small companies or startups here, we are talking about companies that have turnovers into the region and above the billion mark. It’s not a question whether we want that money because we bloody well need it!!!
Some people will deflect and say they create jobs which is true, but the ordinary SME owner that is taking huge risks in this environment by starting up pays every single red cent of tax and large companies should be treated with the same brush.
More rules regulations and legislation on the way. But it will only affect the little people. The multinationals have the politicians in their pocket.
The eu was setup for big business
All talk No action. They won’t make any major moves against the big companies.
Is that a picture of an amazon warehouse in a German concentration camp? Thought so.
Taxation is an area of national competence – to change that would require unanimous approval of all national governments across the EU.
EU tax regulation/legislation is the same for all member states.
On paper…
No it isn’t.
Taxation is an area of national competence – to change that would require unanimous approval of all national governments across the EU.
True, on paper
This could be Irelands gain. Google may have to pay €1 billion to Ireland in back taxes. If they pay the 12.5% Ireland will rake in 10s of millions more in C.T each year.
And pigs might fly!
have your say