EU court to rule 12 May on Amazon, Engie appeals against tax orders

Europe’s second-highest court will rule on 12 May on Amazon.com Inc’s appeal of an EU order to pay about €250m ($300.5m) in back taxes to Luxembourg, Reuters reported.

The European Commission in its 2017 decision said the Grand Duchy spared the US online retailer from paying taxes on almost three-quarters of its profits from EU operations by allowing it to channel profits to a holding company tax-free. Luxembourg  appealed to the Luxembourg-based General Court, contending its treatment of Amazon was legal because it did not give the company a selective advantage.

Amazon has its EU headquarters in Luxembourg and has doubled its number of employees to more than 3,000 people from 1,500 since 2017, making it one of the biggest employers in the country of half a million.

The General Court will also rule on 12 May on French utility Engie’s challenge to the European Commission’s 2018 order to pay back taxes of 120 million euros to Luxembourg. Regulators said the arrangement with Luxembourg authorities artificially reduced Engie’s tax burden which meant it paid an effective corporate tax rate of 0.3% on certain profits in Luxembourg for about a decade.

Luxembourg appealed this decision, as well.

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