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EU regulators to probe Amazon's tax deals with Luxembourg


    BRUSSELS (Reuters) - EU state aid regulators opened an in-depth investigation on Tuesday into Amazon's tax deals with Luxembourg, saying the arrangements could have underestimated the U.S. online retailer's profits and given it an unfair advantage.

    The European Commission said Luxembourg's 2003 tax ruling for Amazon's local subsidiary Amazon EU Sarl allowed the company to pay a royalty to its parent which reduced its taxable profit and might not be in line with market conditions.

    It said this could give Amazon an economic advantage by allowing the group to pay less tax than other companies whose profits are allocated in line with market terms.

    The Commission's probe is the latest against companies benefiting from certain tax practices and against EU government deals which help corporate tax avoidance.

    (Reporting by Foo Yun Chee)