Amazon Reacts to EU Probe, Says No Special Tax Deals With Luxembourg

"Amazon has received no special tax treatment from Luxembourg, we are subject to the same tax laws as other companies operating here," the company said in a statement.

The European Commission earlier on Tuesday said Amazon's arrangements may give it an unfair advantage by allowing it to pay less tax than other companies.

Commission Vice President in charge of competition policy, Joaquin Almunia, said, "National authorities must not allow selected companies to understate their taxable profits by using favourable calculation methods. It is only fair that subsidiaries of multinational companies pay their share of taxes and do not receive preferential treatment which could amount to hidden subsidies. This investigation concerning tax arrangements for Amazon in Luxembourg adds to our other in-depth investigations launched in June. I welcome that cooperation with Luxembourg has improved significantly."

Algirdas Semeta, Commissioner for Taxation, said, "Fair tax competition is fundamental for a healthy Single Market and our common economic prosperity. As we work together to restore growth and competitiveness, it is essential to tackle the harmful tax practices which erode the tax bases of EU Member States. Fair play in taxation must be the rule."

Written with inputs from Reuters