US hits out at EU after Amazon tax ruling

THE US government has hit back at the European Commission after it ordered Amazon to pay around €250m (£223m) in back taxes linked to a sweetheart deal with Luxembourg.

It is the latest EU antitrust decision to affect a major US firm in recent years, with competition commissioner Margrethe Vestager having targeted Apple and McDonald’s over their tax arrangements in Ireland and the Duchy.

A spokesman for the US Treasury said: “The Treasury Department is deeply concerned that the European Commission continues to impose retroactive tax assessments on US companies.”

The spokesman went on to criticise the Commission’s decision, saying its approach to state aid cases is “unfair, contrary to well-established legal principles” and “calls into question the tax rules of EU member states”.

“Furthermore, the Commission’s unilateral actions threaten to undermine principles of tax certainty and the successful rules-based economic partnership between the European Union and the United States.

“The Treasury Department will continue to monitor these cases and make clear its continued objection to the Commission’s unilateral actions.”

The Commission’s ruling followed a three-year investigation into a 2003 tax agreement between Luxembourg and the retailer.