EU orders Amazon to repay €250 million due to illegal tax benefits in Luxembourg

The European Commission has found that Luxembourg provided illegal tax benefits to Amazon of around €250 million. According to Commissioner Margrethe Vestager, ‘Amazon was allowed to pay four times less tax than other local companies subject to the same national tax rules’ and could channel a large share of its profits to a holding company. As a result of the findings, Amazon needs to pay the €250 million to Luxembourg in back taxes. Luxembourg has rejected the findings and said it was considering legal options, while Amazon is considering an appeal. Amazon is one of the biggest employers in Luxembourg.