Luxembourg asks Amazon to set aside EU-imposed tax repayment

Luxembourg will ask online retailer Amazon to set aside the 250 million euros ($293 million) the European Commission has ordered the company to repay in taxes while the parties consider whether or not to appeal.

On Wednesday, the Commission took Ireland to court over its failure to recover up to 13 billion euros of tax due from Apple Inc.

“It is clear that Amazon will have to make the payment as required. The money will be kept in a separate account until the outcome of the procedure,” a spokesman for the Luxembourg Finance Ministry said.

In other cases of illegal tax advantages, such as Fiat in Luxembourg, Starbucks in the Netherlands and a Belgian scheme for 35 companies, the money was also recovered even before appeals were exhausted, the European Commission said.