The European Justice endorses the fiscal aid to Amazon in Luxembourg that Brussels declared illegal

Amazon factory. (Photo: EFE)

The General Court of the European Union has endorsed this Wednesday the tax aid worth 250 million euros that the American multinational Amazon received from Luxembourg and that the European Commission had ordered to return for considering them illegal.

In its ruling, the European Justice considers non-existent the selective advantage that Brussels interpreted when in its decision against the ‘tax ruling’ designed by Luxembourg for Amazon, by concluding that the community services did not sufficiently demonstrate that there had been an undue reduction of the tax burden of one of the European subsidiaries of Jeff Bezos’ company.

Both Amazon and Luxembourg appealed the decision of the Community Executive that implied the recovery by the country’s authorities of up to 250 million euros received by the company in the form of tax advantages for its subsidiary in Europe, installed in Luxembourg.

The European Commission acted in this case by considering that the tax system offered to Amazon in Luxembourg allowed the US firm to pay for several years “substantially less” taxes than other companies in the country “without apparent justification”.

When announcing the sanction, the person in charge of Competition in the Community Executive, Margrethe Vestager, affirmed that three quarters of Amazon’s profits were not taxed, so it was allowed to “pay four times less taxes than other local companies subject to the national legislation ”.

In its ruling this Wednesday, the European Court agrees with Amazon and Luxembourg in their appeals against the Community Executive, considering that it based the main finding that there was …

This article originally appeared on The HuffPost and has been updated.

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