tl;dr
The Court of Justice of the EU's recent dismissal of the European Commission's appeal in favor of Amazon.com, Inc. (NASDAQ:AMZN) related to tax payments in Luxembourg has significant implications for the tech giant. Following the rejection of the appeal, Amazon will not have to pay €250M (about $273...
The Court of Justice of the EU's recent dismissal of the European Commission's appeal in favor of Amazon.com, Inc. (NASDAQ:AMZN) related to tax payments in Luxembourg has significant implications for the tech giant. Following the rejection of the appeal, Amazon will not have to pay €250M (about $273M) in back taxes to Luxembourg. The ruling centers around a tax decision made in 2003 by Luxembourg authorities that the European Commission later found to be incompatible with the internal market. Despite a subsequent challenge by Luxembourg and Amazon, the General Court ruled in May 2021 that the tax ruling did not confer an advantage on Amazon's subsidiary, thereby annulling the EC's decision. The recent Court of Justice's ruling underscored the General Court's judgment, attributing errors in the application of the reference system to the Commission's decision. This tax case is part of a larger effort by EU antitrust chief Margrethe Vestager to scrutinize deals between companies and EU nations suspected of unfair state aid, significantly impacting multinational corporations operating in Europe. Notably, earlier this year, the General Court ruled in favor of Apple Inc. (AAPL) in a separate tax case and ordered a review of the matter. These legal decisions have been instrumental in shaping corporate tax policy within the European Union.
More about Amazon.com Inc
Amazon.com Inc is a leading multinational technology company in the e-commerce, cloud computing, digital streaming, and artificial intelligence sectors. With a market capitalization of $1.54 trillion and a stock price of $3,427.50, Amazon's performance has been robust, with a year-to-date increase of 77.93%. The stock has shown a bullish trend, supported by strong fundamentals and positive market sentiment. However, given the rapid growth and high valuation, there are potential risks associated with a potential correction or market volatility. It's important to consider these factors when evaluating investment opportunities in Amazon.com Inc.
More about Apple Inc
Apple Inc. is a leading American multinational technology company with a focus on consumer electronics, computer software, and online services. In 2020, the company generated a total revenue of $274.5 billion, positioning itself as the world's largest technology company. As of January 2021, Apple became the most valuable company globally. The company also holds the fourth-largest position in PC sales and smartphone manufacturing. Apple is part of the Big Five American information technology companies, alongside Amazon, Google, Microsoft, and Facebook. As of the latest financial data, Apple's stock performance has been positive, with a current stock price of $198.52 and a 0.135% increase. The market sentiment for Apple remains bullish, with a strong outlook for the company's future performance.
Disclaimer:
This is not financial advice. Please do your own research before investing in any asset.