The second European court on Thursday overturned an EU injunction on Amazon to pay around 250 million euros ($ 303.28 million) in back taxes to Luxembourg, as part of a crackdown on the EU against unfair tax deals between multinationals and EU countries.
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The Luxembourg court ruled that Amazon did not benefit from a selective advantage in its tax agreement with Luxembourg.
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“The Commission has not proved at the required legal level that there was an undue reduction in the tax burden of a European subsidiary of the Amazon group”, declared the judge.
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In its 2017 decision, the European Commission said the Grand Duchy had spared the US online retailer from paying taxes on nearly three-quarters of its profits from EU operations by allowing it to channel its profits to a tax-free holding company.
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The cases are T-816/17 Luxembourg / Commission and T-318/18 Amazon EU / Commission.
(1 USD = 0.8243 euros)
(Reporting by Foo Yun Chee and Marine Strauss)