User:CBen49er/sandbox

In October 2014 the European Commission started investigating whether Amazon is avoiding tax via its Luxembourg EU headquarters. In place of paying corporate tax the company pays a tax deductible royalty to a second limited liability partnership. As a result, the European Commission says, “most European profits of Amazon are recorded in Luxembourg but are not taxed in Luxembourg”. As a large proportion of European sales are processed through the Luxembourg Amazon EU Sàrl subsidiary of Amazon.com the parent avoids the majority of taxes in the member states. According to Article 107(1) of the Treaty on the Functioning of the European Union (TFEU), state aid which affects trade between Member States and threatens to distort competition by favouring certain undertakings is in principle incompatible with the EU Single Market.
 * 1) European Commission Investigation of Amazon Tax Avoidance in Europe