The Internet company Amazon recorded its German sales since May no longer in Luxembourg, but in Germany. This was confirmed by a company spokesman the Süddeutsche Zeitung . The Group thus taxed the German gains for the first time in Germany.
Germany is an important market that is growing rapidly for Amazon. The group has reportedly sold in this country last year goods worth nearly twelve billion dollars (about 10.8 billion euros). 2012 There were around nine billion dollars. However, the new control model of the Group Germany will bring no major tax revenues because Amazon makes little profit. CEO Jeff Bezos wants to expand and invest the majority of its profits directly back.
So far, Amazon posted its German sales through the subsidiary Amazon EU S.à.rl in Luxembourg, the Group a tax shelter there had donned. The European Commission checks since last fall whether this tax deal is legal, because Amazon is said to have paid in comparison to other companies in Luxembourg too little tax.
The current tax agreement with the EU S.à.rl dates back to 2003. It stipulated that Amazon the majority of its profits in the EU in Luxembourg recognized, but he is not there or taxable only in very small degree. The level of discount for the American online retailer in Luxembourg correspond to previous estimates “may not be the market conditions”, the Commission stated already in October. Because in comparison to other companies to procure Amazon probably an economic advantage.
Amazon has changed its business practices in the UK. Similar to the German model the Group records also its British sales since May 1 on a local branch.
Many large US corporations are for their control tricks in the criticism. They combine their European operations in subsidiaries, which are located in countries with low tax rates, such as Apple and Google posted its revenue in Ireland. Apple has a special deal in Ireland and pay less than two per cent corporate tax. Royalties to other branch company in turn let the profits of many companies shrink so far that often, as in the case of Amazon, at the end of the income and expense statement is a negative balance. Then hardly taxes will be due.
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