EU - Amazon Wins Case Against Luxembourg Taxes

Arno Froese

Amazon has won a major court fight against a European Commission order that it pay 250 million euros ($303 million) in back taxes to Luxembourg deemed “illegal state aid.”

“The Commission did not prove to the requisite legal standard that there was an undue reduction of the tax burden of a European subsidiary of the Amazon group,” the court concluded.

“Luxembourg gave illegal tax benefits to Amazon. As a result, almost three quarters of Amazon’s profits were not taxed,” EU competition commissioner Margrethe Vestager said in a 2017 statement. “In other words, Amazon was allowed to pay four times less tax than other local companies subject to the same national tax rules.”

However, [the] ruling comes as a blow to Vestager, who has enjoyed only a mixed track record in her efforts to crack down on what she says are sweetheart tax deals between big multinationals and individual EU countries. 

The Fiat Chrysler case is being appealed to the Court of Justice of the European Union, the EU’s highest court, The Irish Times reported. Likewise, the Amazon case is likely to come before the CJEU on appeal.

In a separate case, the General Court sided with the European Commission that French utility Engie benefited from a tax advantage and upheld an order that it 120 million euros ($145.7 million) in back taxes to Luxembourg., 12 May 2021

Arno's Commentary

While lawsuits go back and forth from country to country and continent to continent, it becomes increasingly clear that a more centralized—or better yet, globalized—law and its enforcement must be established in the not-too-distant future. 

This again shows globalism is becoming an irresistible force to steadily unite the nations of the world more closely. 

It is of interest that Acts alludes to the unity of the Gentiles, “The kings of the earth stood up, and the rulers were gathered together against the Lord, and against his Christ. For of a truth against thy holy child Jesus, whom thou hast anointed, both Herod, and Pontius Pilate, with the Gentiles, and the people of Israel, were gathered together” (Acts 4:26-27). The Gentiles little knew what was happening—probably not even the Caesar of Rome—yet this unity in opposition to the Lord is prophetic.

Arno Froese is the executive director of Midnight Call Ministries and editor-in-chief of the acclaimed prophetic magazines Midnight Call and News From Israel. He has authored a number of well-received books, and has sponsored many prophecy conferences in the U.S., Canada, and Israel. His extensive travels have contributed to his keen insight into Bible prophecy, as he sees it from an international perspective.

Read more from this author

ContactAbout UsPrivacy and Safety