(The author is a columnist for Reuters Breakingviews. The opinions expressed are their own.)
MILAN (Reuters Breakingviews) – Concise overview of global finance.
OLD FRONT. Amazon.com won in yesterday’s tax battle. Europe’s second-highest court ruled on Wednesday that the e-commerce giant did not have to comply with a European Commission order to pay $ 303 million in back taxes to Luxembourg. The verdict is further proof that Competition Commissioner Margrethe Vestager’s tax fight against US tech giants is not working. His attempt to use EU state aid rules to dismantle comfortable tax deals had already backfired in September, when the same court overturned a € 13 billion tax order. against Apple.
For Amazon founder Jeff Bezos, however, the decision could be a Pyrrhic victory. A US proposal for a 21% minimum global corporate tax rate on foreign income has revitalized a ten-year campaign against tax evasion. If implemented, the plan would have less incentive for internet giants to base themselves in low-tax jurisdictions such as Ireland or Luxembourg. The tax war has already evolved. (By Lisa Jucca)
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