The European Commission published the non-confidential version of the decision taken against Luxembourg last October 2014 in relation to alleged Transfer Pricing arrangements with Amazon Luxembourg.

As reported in Chartered Accountants Tax News, it was a 2003 tax ruling issued by Luxembourg which allowed Amazon Sárl to pay a tax deductible royalty to a limited liability partnership, not subject to tax in Luxembourg, which attracted the Commissions’ attention. According to the Commission, although most of the profits of Amazon are held in Luxembourg, they are not taxed in Luxembourg.