trending Market Intelligence /marketintelligence/en/news-insights/trending/GHVBNomGpC9orzjcGjrpeA2 content esgSubNav
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us
In This List

Report: Amazon might owe US taxes after EU probe

Blog

Charter, DIRECTV and Comcast rank as the top 'RSN-friendly' MVPDs

TMT News & Research: 2020 Recap

Quibi's $2 billion bet on mobile video fizzles out

Cable nets struggle with cash flow declines due to cord cutting, pandemic


Report: Amazon might owe US taxes after EU probe

Amazon.com Inc. might have to pay back taxes to the U.S. in the wake of the EU's own call for roughly €250 million in unpaid taxes, the Financial Times reported Oct. 9.

Citing unnamed EU officials, the FT reported that half of the profits in a holding company operated by Amazon in Luxembourg, totaling about €1 billion, could be taxable in the U.S. At the U.S. corporate tax rate of 35%, the FT estimated that Amazon could end up paying roughly €300 million more to the U.S. government on profit made through the holding company.

Discussion of potential taxes Amazon owes in the U.S. comes less than a week after the European Commission found that the e-commerce company allegedly reduced what it owed the EU in taxes by paying royalties to a non-taxable holding company based in Luxembourg. Amazon allegedly used the holding company arrangement to reduce its taxes for nearly a decade, the commission charged.

Both Luxembourg and Amazon deny that they broke tax law with the arrangement, and Amazon has said it may pursue an appeal of the commission's ruling, the FT reported.