Amazon wins round one in tax dispute

BRUSSELS: Amazon yesterday won its fight against an EU order to pay about 250 million euros (roughly R4.2bn) in back taxes to Luxembourg as Europe’s second highest court dealt a blow to the bloc’s efforts to make multinational corporations pay more tax.

The Luxembourg-based General Court said Amazon had not enjoyed a selective advantage in its tax deal with the Grand Duchy.

“The Commission did not prove to the requisite legal standard that there was an undue reduction of the tax burden of a European subsidiary of the Amazon group,” the judge said.

Amazon in a statement welcomed the ruling, saying it was in line with its “long-standing position that we followed all applicable laws.