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EU to require Amazon to pay more than €100 million in back taxes

The European Union will order the U.S. largest online store Amazon to pay Luxembourg several hundred million euros for non-payment of taxes.

The investigation into tax arrangements between Amazon and Luxembourg has began in 2014 as the European Commission suspected the corporation of tax evasion since 2003.

The EU competition authority said Amazon EU Sarl has paid annually €500 million as a royalty fee to a Luxembourg-based parent company. These payments allowed Amazon to reduce the taxable amount, as under the laws of Luxembourg, the parent company could not pay corporate tax on a part of the profits.

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