Amazon’s Core Tech Value Raises Questions for Tax Regulators in U.S., Europe


Jeff Bezos’s relentless focus on user experience has helped him make Amazon the most valuable e-commerce company in the world. But regulators in Europe and the U.S. say that the value Amazon places on the technology behind that experience varies radically depending on which side of the Atlantic it’s on — and which appraisal will lower its tax bill.

In Europe, the e-commerce giant tells authorities that the intellectual property behind its web shopping platform is immensely valuable, justifying the billions in tax-free revenue it has collected there since moving its technology assets to tax-friendly Luxembourg a decade ago. In the U.S., however, it plays down the value of those same assets to explain why it pays so little in taxes for licensing them.

Authorities on both continents are asking questions. European competition regulators are investigating whether the company received illegal state aid from Luxembourg that would require repayment of back taxes. And the U.S. Internal Revenue Service sent Amazon a notice of adjustment in May stating that the company owes $1.5 billion in back taxes.

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Via AdAge

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Lars is Google’s Head of Marketing across Singapore, Malaysia, Pakistan, Bangladesh and Sri Lanka. With nearly two decades of international experience in the Internet and media industry, his passion lies at the intersection of technology and marketing. His career spans across the globe - from Europe to the emerging markets in Asia - from early stage start-ups to large organizations, providing him with an in-depth understanding of marketing, sales and business development across cultures and industries. In his current role he is responsible for local B2B and B2C brand and product marketing across all Google and Youtube services and devices.

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