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Amazon Faces EU Lawmakers as Company Awaits Decision on Taxes

Published on Nov 10 2015 12:46 PM in A-Brands tagged: Walmart / Amazon / Coca-Cola

Amazon Faces EU Lawmakers as Company Awaits Decision on Taxes

Amazon.com is among 11 companies that will be questioned by European Union lawmakers next week about low-tax deals as the Internet retailing giant awaits a decision on its fiscal pact with Luxembourg from antitrust regulators.

Barclays and McDonald’s are also among companies that will appear at a meeting of the European Parliament’s special tax committee on 16 November the committee’s secretariat said in an e-mail Tuesday. An earlier hearing was scuttled when nearly all the corporate invitees turned lawmakers down.

Fiat Chrysler Automobiles, which hasn’t responded to the committee’s invitation, and Starbucks, were told to repay tens of millions of euros in back taxes last month in the first decisions from EU antitrust regulators on fiscal deals that allowed companies to avoid taxes. The European Commission may issue a second set of decisions in cases involving Apple and Amazon before the end of the year.

The Parliamentary probe, which is separate from the regulatory inquiry, was started after documents leaked by a group of investigative journalists showed that Luxembourg alone struck hundreds of secret fiscal deals known as tax rulings with companies from around the world, from PepsiCo to Walt Disney Co. Amazon, which has more than 1,000 people working in the tiny nation, said in a US filing its taxes could increase in case of a negative decision by the EU in its case.

Disney, Coca-Cola Co, Anheuser-Busch InBev NV, also said they will send someone to the 16 November, as did HSBC Holdings, Ikea Group and Philip Morris International. Out of 13 companies, only Wal-mart declined to appear, the committee secretariat said.

News by Bloomberg, edited by ESM. To subscribe to ESM: The European Supermarket Magazine, click here.

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