Modelling A.I. in Economics

Amazon Escapes $268 Million Tax Bill in Luxembourg

An adviser to Europe's top court has said that Amazon should not pay 250 million euros ($268 million) in back taxes to Luxembourg. The adviser, Advocate General Michal Bobek, said that the European Commission had made errors in its assessment of the tax deal between Amazon and Luxembourg.

The Commission ordered Luxembourg to recover the back taxes in 2017, saying that the tax deal gave Amazon an unfair advantage over its competitors. However, Bobek said that the Commission had not shown that the tax deal was illegal. He said that the Commission had not considered whether the tax deal was in line with Luxembourg's domestic law.

Bobek's opinion is not binding on the Court of Justice of the European Union, which will ultimately decide whether Amazon must pay the back taxes. However, Bobek's opinion is likely to be influential. The Court of Justice has often followed the opinions of its advocates general in the past.

Amazon has welcomed Bobek's opinion. The company said in a statement that it was "pleased" with the opinion and that it "continues to believe that the Commission's decision was wrong."

The case is a significant one for Amazon and for the EU. If the Court of Justice rules in Amazon's favor, it could set a precedent for other companies that have been accused of tax avoidance. It could also make it more difficult for the Commission to challenge tax deals between countries and multinational companies.

The case is still ongoing and it is not clear when the Court of Justice will issue its ruling. However, Bobek's opinion is a significant development in the case and it is likely to have a major impact on the outcome.

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