Amazon investigated over tax avoidance
Amazon and the Luxembourg government are now under investigation by the EU tax officials over the company's tax avoidance.
The EU's competition commission has asked Luxembourg, where Amazon's European business is based, to hand over details on the company's tax payments.
An EU official told the Financial Times that Brussels was seeking more information on the nature of the tax deal that had been struck between Luxembourg and Amazon. The move could lead to a full-blown investigation into the retailer's European tax arrangements. The commission can force companies to pay back any tax they find is due.
Earlier this year new accounts revealed Amazon paid just £4.2m in tax to the UK Treasury in 2013 - a tiny fraction of the £4.3bn in sales to British customers.
The move comes after the EU launched investigations into the tax affairs of Apple, Starbucks and Fiat last month, specifically looking at whether deals they had struck in Ireland, the Netherlands and Luxembourg could breach state aid rules.
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