Moreover, the online retailers change of tax practices, which was made effective on 1 May, 2015, was mainly due to intense scrutiny of corporate tax practices in Europe, nasdaq.com reports, citing Wall Street Journal.
On 7 October 2014, the European Commission opened an investigation regarding Amazon in Luxembourg to examine whether the country provided any selective advantage to the company in the context of issuing a tax ruling. Amazon has implemented the structure, with local branches booking revenue, in the UK., Germany, Italy and Spain, according to the report.
The EU is investigating whether tax system of multinationals in individual EU countries complies with EU state aid rules. The Commission announced in 2014 that it has opened formal investigations in three cases, respectively.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now