Tresury & Risk Home Menu

What Amazon's $294M Bill Tells Others in EU's Sights

The regulators' decision gives insight on the use of intellectual property to shift profits.

European Union regulators sent a warning to any company using fees on intellectual property rights to shift profits away from the taxman—slapping Inc. with a 250 million-euro ($294 million) bill and giving Luxembourg another rap on the knuckles.

The EU took a dim view of a structure that allowed Amazon to slash its taxable profits in Europe over about a decade by channeling them to a tax-free unit located in Luxembourg that was meant to license the technology behind its web shopping platform.

Copyright 2017 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.