The EU has accused both Luxembourg and Amazon of finding a band-aid fix to avoid tax. Competition Commissioner Joaquin Alumina sent a 23 page letter to the Luxembourg foreign ministry. It is they said, “The commission’s preliminary view is that the tax ruling of 5 November 2003 by Luxembourg in favour of Amazon constitutes state aid”.
The EU said: “The commission is of the opinion that through the contested tax ruling the Luxembourgish authorities confer an advantage on Amazon.” Amazon denied receiving any special tax treatment from Luxembourg.
They are also probing deals that took place between Apple and Ireland and Starbucks and the Netherlands.