E-commerce giant Amazon has said it disagrees with the EU’s assessment of its tax liabilities, adding that it will consider an appeal at the Europe’s top court.
“We believe that Amazon did not receive any special treatment from Luxembourg and that we paid tax in full accordance with both Luxembourg and international tax law,” the company said in a statement on Wednesday.
The European Commission had said on Wednesday that Luxembourg provided illegal tax benefits worth 250 million euros ($294 million) to Amazon between 2003 and 2011.
"Luxembourg gave illegal tax benefits to Amazon. As a result, almost three-quarters of Amazon's profits were not taxed," Margrethe Vestager, European commissioner for competition, said in a statement.
Vestager said that Amazon was allowed to pay four times less tax than other local companies, which is illegal under EU state aid rules.
Amazon said it will study the commission's ruling and consider its legal options, including an appeal.
“Our 50,000 employees across Europe remain heads-down focused on serving our customers and the hundreds of thousands of small businesses who work with us,” the company added.
A commission investigation that began in 2014 concluded that a tax ruling issued by Luxembourg for the years 2003-2011 lowered the tax paid by Amazon there without any valid justification.