Amazon Escapes $270 Million EU Tax Bill Following Court Ruling

The EU's Court of Justice dismisses European Commission's appeal, marking a setback for efforts to crack down on internal tax havens.

Amazon won't have to pay about $270 million in back taxes after the EU's Court of Justice ruled in the company's favor, dismissing an appeal by the European Commission.
The court ruled that the European Commission had not established that the tax ruling given to Amazon by Luxembourg was state aid that was incompatible with the EU's internal market.
The case dates back to 2017, when the European Commission determined a 2003 tax ruling by Luxembourg concerning two of Amazon's subsidiaries there constituted state aid and had artificially reduced Amazon's corporate tax liability.
The ruling is a setback for the European Commission's attempt to crack down on internal tax havens in the EU and could set a precedent for other global tech giants, including Apple, which faces a roughly $14 billion tax judgment on similar grounds in Ireland.
Despite the ruling, calls for tax reforms continue, with Oxfam's EU tax expert, Chiara Putaturo, urging the EU to address tax havens within its borders that allow companies to sidestep their tax bills.