Amazon has settled a long-running dispute with French tax authorities, which started in 2012 after the company received a request for nearly EUR 200 million in back-taxes, interest and fines. The amount paid to close the affair has not been disclosed.
The tax adjustment for the 2006-2010 period was in relation to disputed practices that sought to minimize the company’s tax bill in the country, channelling sales through Luxembourg. In a statement, Amazon said that its accounting methods had changed since 2015, with its taxes now accounted for in France following the creation of a dedicated subsidiary. In a similar case, the company agreed to pay a EUR 100 million settlement with the Italian tax authorities at the end of 2017.
The news comes a day after EU commissioner for economic and fiscal affairs Pierre Moscovici spoke about changing the rules to tax the so-called GAFA (Google, Apple, Facebook and Amazon) and similar multinational tech giants. Interviewed by Radio J, Moscovici said that he will present an ambitious fiscal reform on behalf of the European Commission at the end of March, targeting companies with revenues worth more than EUR 750 million, adding that the measures would "create a consensus and an electroshock."
