The second highest court in Europe will issue its ruling on May 12 on Amazon’s appeal against the European Union’s order to pay about 250 million euros (300.5 million dollars) in back taxes to Luxembourg.
In its 2017 decision, the European Commission said the Grand Duchy saved the US online retailer from paying taxes on nearly three-quarters of its profits from European Union operations by allowing it to transfer the profits to a tax-exempt holding company.
Luxembourg also appealed to the General Court in Luxembourg, considering that its treatment of Amazon was legal because it did not give the company a selective advantage, while the headquarters of the company in the European Union is located in Luxembourg and the number of its employees has doubled to more than 3000 people from 1500 since 2017, This makes it one of the largest employers in the city with a population of half a million.
The General Court will also issue its decision on May 12 regarding the appeal filed by the French utility company Enge to the European Commission order for 2018 to pay taxes of 120 million euros to Luxembourg, and the organizers said that the arrangement with the Luxembourg authorities artificially reduced the tax burden on Inge, which means that it paid a tax rate. Effective on companies by 0.3 percent on certain profits in Luxembourg for nearly a decade, and Luxembourg also appealed the decision.