Jump to content

Sign in to follow this  
Guest

EU Bills Bezos

Topic Summary

Created

Last Reply

Replies

Views

Guest -
Guest -
1
199

Top Posters

  • Guest 1

Recommended Posts

Guest

EU regulators will continue their round-up of multinational “outlaws” today, slapping Amazon (-0.22%) with a several hundred million dollar bill for avoiding EU taxes since 2004 (h/t 

    Hello guest!
).

The European Commission’s head bounty hunter, Margrethe Vestager, alleged Amazon funneled over $3 billion in profits to its Luxembourg-based subsidiaries to protect them from European taxes. 

How? Luxembourg supposedly offered a cap on taxable profits to Amazon. In return, Amazon would place its core European operations in Luxembourg. 

This isn’t the first de-Luxe treatment

Luxembourg, a tiny nation of 580,000, has cemented itself as the “cool uncle” of the EU, offering lucrative tax breaks to corporations. One 

    Hello guest!
reported $1.2 billion in pretax profit over four years, but only paid $3.2 million in taxes—that’s a 0.25% tax rate!

Not convinced? Look no further than FedEx, which enjoyed an effective tax rate of 

    Hello guest!
. Altogether, Luxembourg has lured well over 300 eager multinationals into its European tax haven heaven.

But the pearly gates are closing fast

The EU has been on high alert, plugging up tax loopholes across the European bloc. Vestager cracked the whip on Apple last August, demanding it cough up $15 billion to Ireland in unpaid taxes. And Starbucks found a ~$35 million ticket on its windshield in the Netherlands for a grande cup of tax evasion. 

It begs the question: how will multinationals react? If historically low tax rates and loopholes drove $2.6 trillion overseas in the first place, could a 

    Hello guest!
 for lower U.S. corporate taxes (20% down from 35%) and a one-time 
    Hello guest!
 bring the cash back?

Share this post


Link to post
Share on other sites

Sign in to follow this  

  • Forum Statistics

    60,452
    Total Topics
    110,714
    Total Posts
  • Member Statistics

    16,276
    Total Members
    1,592
    Most Online
    IPS Temp Admin
    Newest Member
    IPS Temp Admin
    Joined




×
×
  • Create New...

Important Information

Terms of Service Confirmation Terms of Use Privacy Policy Guidelines We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.