Amazon ultimately won the IRS lawsuit against Amazon on tax issues


DoNews, August 17 (Reporter Zhai Jiru) 17, according to foreign media news, Amazon and the U.S. Tax Administration on the tax case won. It is understood that the case involved more than $1.5 billion.
The lawsuit revolved around several transactions between Amazon and a Luxembourg company in 2005 and 2006. The IRS appealed against the 2017 U.S. Tax Court ruling in favor of Amazon.
At the heart of the case is the transfer pricing in the cost-sharing agreement between Amazon and Luxembourg’s European subsidiaries. According to the agreement, Amazon Group granted its subsidiary the right to use certain existing intangible assets in Europe, including the intangible assets needed to operate Amazon’s European website business, and the subsidiary had to pay in advance for the purchase to compensate its parent company.
The Circuit Judge said that the history of drafting the regulations and the Ministry of Finance supported the argument that Amazon’s “intangible” assets were limited to “independent transferable” assets.
In the end, the court upheld its judgment in 2017 by three votes in favour and none against it. (End)