natgillin/translations-raw huggingface dataset:
Amazon.com Inc., årsrapport 2016, s. 3.
Third, all corporate taxpayers, whether they operate independently on the market or form part of a multinational corporate group, are taxed on the same taxable event – the generation of profit – and at the same tax rates under the Luxembourg corporate income tax system.
Amazon.com Inc., årsrapport 2003, s. 5.
By limiting the reference system only to companies forming part of a multinational corporate group, an artificial distinction is introduced between integrated companies and standalone companies based on their company structure which the Luxembourg corporate income tax system does, in general, not take into account when taxing the profits of companies falling within its tax jurisdiction.
Opfyldelse betyder den proces, som startes i en virksomhed, når en ordre modtages for et produkt.
Fourth, by virtue of Article 164(3) LIR, profit derived from intra-group transactions is in fact determined in exactly the same manner as income derived from transactions between unrelated companies: while the latter depend on prices negotiated on the market, the former depend on market conform prices, so that in both instances the profit being taxed is ultimately determined (directly or indirectly) by the market.
https://services.amazon.com/fulfillment-by-amazon/benefits.htm/ref=asus_fba_hnav
The purpose of Article 164(3) LIR is therefore to align the tax treatment of transactions concluded between associated group companies with the tax treatment of transactions concluded between independent companies, so that the former are treated no more favourably than the latter under the Luxembourg corporate income tax system.
Amazon.com Inc., årsrapport 2002, s. 2.
Fifth, accepting the argument that the reference system should be limited to companies belonging to a multinational corporate group simply because Article 164(3) LIR only applies to those companies would open the door to Member States to adopt fiscal measures that blatantly favour multinationals over independent companies.
Jf. også TP-rapporten, s. 6-7.
Companies belonging to a multinational corporate group can and do engage in the same activities as independent companies and those two types of companies can and do compete with one another.
Amazons briefing efter retssagen, s. 81, punkt 253.
Since both types of companies are taxed on their total taxable profit at the same corporate income tax rate under the general Luxembourg corporate income tax system, any measure allowing the former to reduce its taxable base upon which that tax rate is applied grants it a favourable tax treatment in the form of a reduction of its corporate income tax liability as compared to the latter, which in turn distorts competition and affects intra-EU trade.
Betegnelsen »EU-webstederne« omfatter ikke www.amazon.nl i hele denne afgørelse, fordi dette websted blev lanceret efter den periode, som er genstanden for undersøgelsen i denne afgørelse.
Finally, the Commission does not agree with Luxembourg and Amazon that in previous decisions the Commission confirmed that the reference system must be limited to integrated companies only.
Amazon.com Inc., årsrapport 2016, s. 3.
At the outset, the Commission recalls that it is not bound by its decisional-practice and that each potential aid measure must be assessed on the basis of its own merits under the objective criteria of Article 107(1) of the Treaty, so that even if a contrary decisional practice were shown to exist, that could not affect the findings of the present decision.
Amazon.com Inc., årsrapport 2016, s. 4 og 67.
In any event, in those decisions the national tax schemes giving rise to aid were set up in a way that those schemes already differentiated between different categories of integrated companies.
TP-rapporten s. 12.
That does not mean, however, that those schemes were not also selective from that perspective.
Amazons skrivelse af 5. marts 2015: Bilag 6.
Amazon also argued that to demonstrate selectivity in the present case, the Commission must compare the treatment of LuxOpCo as a result of the contested tax ruling against the tax ruling practice of the Luxembourg tax administration, in general, and the 97 rulings it identified that allegedly endorse the profit split method, in particular.
TP-rapporten, s. 13: »As of the Restructuring Date, LuxSCS' principal activities will be limited to those of an intangible holding company and a participant in the ongoing development of the Intangibles through the CSA.
The Commission disagrees with that argument since it would mean that the reference system is that practice, limited to a subcategory of rulings, and not the provisions of Luxembourg's national tax legislation.
Additionally, LuxSCS will license the Intangibles to LuxOpCo, subject to the Intangibles License, and will receive royalty payments pursuant to this license.«.
If that argument were accepted, it would allow a Member State's tax administration to consistently deviate from its national tax legislation so as to give a consistently favourable tax treatment to a specific category of taxpayers, namely those that have requested and obtained the type of ruling in question.
Amazons brev af 20. april 2006 til Luxembourgs skatteforvaltning (nedfældet af Amazons skatterådgiver [Konsulent 1]), s. 2: »EHT [LuxSCS], a wholly owned indirect subsidiary of Amazon.com Inc was created for the purpose of holding and developing intellectual property (by way of financial contribution only). […] EHT [LuxSCS] has an activity limited to the mere holding of Amazon's EU intellectual property, the shares in AEU and has concluded a limited number of legal agreements necessary for the Luxembourg structure to operate (as described under point 1.2 below).
In any event, the Commission observes that none of the 97 rulings to which Amazon refers actually mention the profit split method or the TNMM as a transfer pricing method endorsed by the relevant tax ruling.
EHT [LuxSCS] will only receive passive income from its subsidiaries (interest and royalties).« Punkt 1.2 i dette brev beskriver aftalerne, der er beskrevet i betragtning 105 i denne afgørelse.
Of the 97 rulings referred to by Amazon, 78 concerned the tax treatment of profit participating loans and 6 of income sharing loans, both of which are financial hybrid instruments.
Et andet koncernselskab, der modtog en vis begrænset finansiering fra LuxSCS var Amazon Eurasia Holding Sarl (EUR [20-30] millioner i 2013).
On that basis, the Commission considers that none of the 97 tax rulings referred to by Amazon can be compared to the contested tax ruling.
Licensaftale for allerede eksisterende immateriel ejendomsret og overdragelsesaftaler for allerede eksisterende immateriel ejendomsret, begge indgået mellem LuxSCS og ATI med virkning fra 1. januar 2005.
In light of the foregoing, the Commission concludes that the applicable reference system is the general Luxembourg corporate income tax system and not Article 164(3) LIR.
Aftale om tildeling af immateriel ejendomsret og licens mellem LuxSCS, Amazon.fr SARL, Amazon.de GmbH og Amazon.co.uk Ltd. af 30. april 2006.
As demonstrated in Section 9.2, the contested tax ruling endorses a transfer pricing arrangement producing a taxable profit for LuxOpCo that departs from a reliable approximation of a market-based outcome in line with the arm's length principle which lowers its taxable base for corporate income tax purposes.
Som anført i CSA, punkt 6.4, så beholdt LuxSCS titlen og ejerskabet til alle immaterielle aktiver, som det var blevet tilført, ud over licenserne til immaterielle aktiver udstedt af A9 og ATI til LuxSCS.
That ruling can therefore be said to confer a selective advantage on LuxOpCo under the general Luxembourg corporate income tax system.
Aftale om omkostningsfordeling, punkt 9.12.
During the period that the contested tax ruling was in force, Article 164(3) LIR was considered to lay down the arm's length principle under Luxembourg tax law.
CSA med ikrafttrædelse den 5. januar 2009, punkt 2.3.
Pursuant to that provision, companies belonging to a multinational corporate group that transact with associated companies must determine their transfer prices in line with that principle.
Som forklaret i CSA, afsnit 1.1, så er A9's bidrag til CSA's immaterielle aktiver begrænset til immaterielle ejendomsrettigheder ejet af eller på anden måde i besiddelse af A9 med hensyn til e-handelssøgnings- og navigationsteknologier.
As demonstrated in Section 9.2, the transfer pricing arrangement endorsed by the contested tax ruling produces a taxable income for LuxOpCo that does not reflect prices negotiated at arm's length on the market.
Disse indbefatter teknologi til Amazons softwareplatform, de lokale EU-websteders udseende, kataloger, søge- og navigationsfunktioner, logistikproces, ordrebehandling, kundeservice og personaliseringsfunktioner.
It therefore lowers LuxOpCo's corporate income tax liability in Luxembourg as compared to companies belonging to a multinational corporate group that determine their transfer prices in compliance with Article 164(3) LIR.
Se betragtning 174 samt følgende for præciseringer.
In light of the foregoing, the Commission concludes that the advantage identified in Section 9.2 is selective in nature because it favours Amazon as compared to other corporate taxpayers belonging to a multinational corporate group that engage in intra-group transactions and that, by virtue of Article 164(3) LIR, must estimate the prices for their intra-group transactions in a manner that reflects prices negotiated by independent parties at arm's length on the market.
Som forklaret i Amazons brev af 21. august 2015, overtog LuxSCS den juridiske ejendomsret til de europæiske kundedata indsamlet af Amazon Int'l Sales, Inc. og Amazon Int'l Marketplace, Inc. som en del af omstruktureringen af de europæiske transaktioner.
LACK OF JUSTIFICATION
Kundedatabasen blev efterfølgende yderligere udviklet og vedligeholdt af LuxOpCo.
Neither Luxembourg nor Amazon has advanced any possible justification for the favourable treatment caused by the contested tax ruling in favour of LuxOpCo.
Dette indbefatter varemærke, handelsnavn, stil, logier, præsentation af Amazon og tilknyttede immaterielle aktiver.
The Commission recalls, in this respect, that the burden of establishing such a justification lies with the Member State.
CSA, afsnit 1.1, 1.4. og 1.11 fastslår: »Notwithstanding the foregoing, the parties expressly agree that the […][Intangibles] does not include any World Wide Web domain names.«.
In any event, the Commission has not been able to identify any possible ground for justifying the preferential treatment from which LuxOpCo benefits as a result of that measure that could be said to derive directly from the intrinsic, basic or guiding principles of the reference system or that is the result of inherent mechanisms necessary for the functioning and effectiveness of the system, whether that reference system is the general Luxembourg corporate income tax system, as established by the Commission, or Article 164(3) LIR, as advocated by Luxembourg and Amazon.
Som forklaret i Amazons brev af 12. juni 2015, så overførte LuxSCS aktierne i LuxOpCo til Amazon Europe Core S.à r.l. den 16. december 2013.
CONCLUSION ON SELECTIVITY
TP-rapporten s. 30.
In light of the foregoing, the Commission concludes that the advantage identified in Section 9.2 which the contested tax ruling confers on LuxOpCo is selective in nature.
Amazons brev af 5. marts 2015, betragtning 6 og internt Amazon-dokument: Amazons brev til de luxembourgske skattemyndigheder af 14. april 2006, s. 2.
CONCLUSION ON THE EXISTENCE OF AID
TP-rapporten s. 13.
Since the contested tax ruling fulfils all the conditions of Article 107(1) of the Treaty, it must be considered to constitute State aid within the meaning of that provision.
Den enhed, der ejer og tilbyder varerne til salg, og som er ansvarlig for indkassering og betaling af moms, er opført som sælger.
That aid results in a reduction of charges that should normally be borne by LuxOpCo in the course of its business operations and should therefore be considered as granting operating aid to LuxOpCo.
Det Forenede Kongeriges Underhus: Report on HMRC's 2011-2012 Accounts — Written evidence from Amazon EU Sarl by Andrew Cecil (Director EU Public Policy, LuxOpCo, Luxembourg), 13. november 2012: »Amazon EU Sarl owns the inventory, earns the profits associated with the selling these products to end customers and bears the risk of any loss.
BENEFICIARY OF THE AID
From Luxembourg, Amazon EU Sarl processes and settles payments from its European customers.« Se følgende websted: https://publications.parliament.uk/pa/cm201213/cmselect/cmpubacc/writev/716/m03.htm.
The Commission considers the contested tax ruling to grant a selective advantage to LuxOpCo within the meaning of Article 107(1) of the Treaty, since it leads to a lowering of that entity's taxable profit and thus its corporate income tax liability in Luxembourg.
Amazons brev af 22. marts 2016, s. 1-2 samt bilag E hertil.
However, the Commission notes that LuxOpCo forms part of a multinational corporate group, i.e. the Amazon group.
LuxOpCo styrede »cash pooling« og likviditetsforvaltning for Amazons europæiske transaktioner; jf. internt Amazon-dokument: Luxembourg Headquarters — Overview, s. 11-17, og internt Amazon-dokument: Pre & Post Goldcrest Balance Sheet Analysis, s. 1, og internt Amazon-dokument: Advance Tax Agreement, brev fra Amazon til […], 2. april 2014, afsnit 11 og internt Amazon-dokument: EU Policies and Procedures Manual, effective 1 May 2006, s. 3.
Separate legal entities may be considered to form one economic unit for the purpose of the application of State aid rules.
Amazons brev af 14. april 2006 til Luxembourgs skatteforvaltning, s. 2.
That economic unit is then considered to be the relevant undertaking benefitting from the aid measure.
I en skattemæssig enhed (le régime d'intégration fiscal) kan et moderselskab beskattes som gruppe sammen med et eller flere af dets datterselskaber.
As the Court of Justice has previously held, ‘[i]n competition law, the term ‘undertaking’ must be understood as designating an economic unit […] even if in law that economic unit consists of several persons, natural or legal’.
Af hensyn til selskabsskattemæssige formål betyder dette, at datterselskaberne anses for at være blevet absorberet af moderselskabet.
To determine whether several entities form an economic unit, the Court of Justice looks at the existence of a controlling share or functional, economic or organic links.
For at være berettiget til status som skattemæssig enhed skal moderselskabet eje, direkte eller indirekte, 95 % eller mere af aktiekapitalen i et datterselskab, og både det konsoliderende moderselskab og datterselskaberne skal være aktieselskaber med hjemsted i Luxembourg underlagt fuld selskabsskattepligt.
In the present case, LuxOpCo was fully controlled by LuxSCS during the relevant period, which in turn was controlled by US-based companies of the Amazon group.
Konsolideringen varer i mindst fem regnskabsår (artikel 164bis, LIR).
Moreover, as it is clear from the ruling request, it was the Amazon group, as controlled by Amazon.com, Inc., which took the decision to establish LuxOpCo in Luxembourg.
Amazons skrivelse af 6. marts 2017, bilag 28a.
In addition, transfer pricing, by its very nature, affects more than one group company, because a profit decrease in one company normally increases the profit of its counterparty.
Se afsnit 2.3.3.3.
In the present case, the determination of LuxOpCo's taxable profit in Luxembourg influences the royalty payments to LuxSCS, since the level of the royalty corresponds to any profit recorded by LuxOpCo above [4-6] % of its operating expenses or 0,55 % of revenue, as agreed by the contested tax ruling.
Interne Amazon-dokumenter: den ændrede og reviderede aftale om tjenesteydelser mellem LuxOpCo og Amazon.fr SARL, den ændrede og reviderede aftale om tjenesteydelser mellem LuxOpCo og Amazon.fr Logistique SAS, den ændrede og reviderede aftale om tjenesteydelser mellem LuxOpCo og Amazon.co.uk Ltd., den ændrede og reviderede aftale om tjenesteydelser mellem LuxOpCo og Amazon Logistik GmbH, den ændrede og reviderede aftale om tjenesteydelser mellem LuxOpCo og Amazon.de GmbH, alle indgået med virkning pr. 1. maj 2006.
The reduction of LuxOpCo's tax liability in Luxembourg therefore not only benefits LuxOpCo, but also LuxSCS.
Se betragtning 109.
Moreover, since profit attributed to LuxSCS was not subject to taxation in Luxembourg, but, at best, subject to deferred taxation if and when it is distributed to its US-based partners, the contested tax ruling confers aid on the Amazon group as whole.
Aftale om tjenesteydelser, punkt 4.1 (priser): »In consideration of [EU Local Affiliate]'s performance of the Services, [LuxOpCo] shall pay [EU Local Affiliate] fees (the »Service Fees«) equal to the Applicable Costs (as defined in Exhibit 1) incurred by [EU Local Affiliate] in providing the corresponding Services, plus the Applicable Markup set forth in Exhibit 1. […].
Consequently, any favourable tax treatment afforded to LuxOpCo by the Luxembourg tax administration benefits not only LuxOpCo, but the Amazon group as a whole by providing additional financial resources to the entire group.
« Bilag 1 bestemmer, at de »gældende omkostninger« er summen af alle driftsudgifter, sådan som bestemt i henhold til de generelt gældende bogføringsprincipper i USA, direkte og indirekte forbundet med tjenesterne eksklusive renteudgifter, dividende udbetalt af de lokale datterselskaber i EU, udgifter i forbindelse med valutaveksling eller enhver anden udgift udelukket efter gensidig aftale, der anses for passende.
Therefore, notwithstanding the fact that that group is organised in different legal personalities and the contested tax ruling concerns the tax treatment of LuxOpCo and LuxSCS, that group must be considered as a single economic unit benefitting from the contested aid measure.
Det »gældende tillæg« er en procentandel, der varierer fra 3-8 %, af de gældende omkostninger, afhængigt af kendetegnende for den tjeneste, der leveres, og det lokale EU-selskab.
COMPATIBILITY OF THE AID
Som forklaret i betragtningerne til aftalerne om tjenesteydelser, bestemmes tillægget til omkostningerne på ud fra en »omfattende økonomisk analyse« af armslængdesatsen for kompensation for tjenesteydelser leveret til LuxOpCo af de lokale datterselskaber i EU.
State aid shall be deemed compatible with the internal market if it falls within any of the categories listed in Article 107(2) of the Treaty and it may be deemed compatible with the internal market if it is found by the Commission to fall within any of the categories listed in Article 107(3) of the Treaty.
Licensaftalen, punkt 1.4: »Europæisk land« betyder »(a) the economic, scientific, and political organization known as the European Union consisting, as of the Effective Time [30 April 2006], of Belgium, France, Italy, Luxembourg, Netherlands, Germany, Denmark, Greece, Ireland, United Kingdom, Spain, Portugal, Austria, Finland, Sweden, Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia, and including any and all other countries that may become members of such organization during the Term, and (b) any countries listed as »Applicant countries« or »Other European countries« on the Web page located at http://europa.eu.int/abc/governments/index_en.htm#, or any successors thereto or replacements thereof. «
However, it is the Member State granting the aid which bears the burden of proving that State aid granted by it is compatible with the internal market pursuant to Articles 107(2) or 107(3) of the Treaty.
Licensaftalen, punkt 2.1, litra a), og punkt 1.5 i Licenseret formål.
Luxembourg has not invoked any of the grounds for a finding of compatibility under either of those provisions for the State aid it has granted through the contested tax ruling.
Punkt 2.1, litra a), bestemmer: »(a) »Exclusive Intellectual Property License Grant«.
Moreover, as explained in Recital 606, the aid granted by the contested tax ruling constitutes operating aid.
Amazon EHT [LuxSCS] irrevocably grants AEU [LuxOpCo], under all Amazon EHT [LuxSCS] intellectual property rights in or comprising the Amazon EHT [LuxSCS] Intellectual Property, whether existing now or in the future, the following sole and exclusive right and license to the Amazon EHT [LuxSCS] Intellectual Property during the Term, solely for the Licensed Purpose, to: (i) make, use, reproduce, copy, modify, translate, integrate into or extract from a database and create derivative works of Amazon EHT [LuxSCS] Intellectual Property; (ii) publicly perform or display, import, broadcast, transmit, distribute and communicate to the public by any means whatsoever, including but not limited to wire or wireless transmission process, using broadcasting, satellite, cable or network, license, offer to sell, and sell, rent, lease or lend originals and copies of, and otherwise commercially or non-commercially exploit any Amazon EHT [LuxSCS] Intellectual Property (and derivative works thereof); and (iii) sublicense to Affiliates or third parties the foregoing rights, including the right to sublicense to further third parties. «
As a general rule, such aid can normally not be considered compatible with the internal market under Article 107(3) of the Treaty in that it does not facilitate the development of certain activities or of certain economic areas, nor are the tax advantages in question limited in time, declining or proportionate to what is necessary to remedy to a specific market failure in the areas concerned.
Internt Amazon-dokument: Licensaftale, punkt 2.5 (Licensgebyr) og bilag A.
Consequently, the State aid granted to LuxOpCo and the Amazon group by Luxembourg is incompatible with the internal market.
I licensaftalen refereres der til sådanne immaterielle værker som »afledte værker«, hvilket ifølge punkt 1.3 betyder »any and all new works created by or for AEU [LuxOpCo] from pre-existing material contained within, or as a result of access to or use of the Amazon EHT [Lux SCS] Intellectual Property [including the Intangibles][…].«.
UNLAWFULNESS OF THE AID
Internt Amazon-dokument: Licensaftale punkt 2.1, litra b): »AEU [LuxOpCo] irrevocably and exclusively assigns and agrees to assign to Amazon EHT [LuxSCS], its successors, and assigns, all right, title, interest and ownership in and to any and all Derivative Works of the Amazon EHT [LuxSCS] Intellectual Property created by or for AEU [LuxOpCo] as provided under Section 2.1(a).«
According to Article 108(3) of the Treaty, Member States are obliged to inform the Commission of any plan to grant aid (notification obligation) and they may not put into effect any proposed aid measures until the Commission has taken a final position decision on the aid in question (standstill obligation).
Licensaftale, punkt 9.2: »(a) AEU [LuxOpCo] shall, at its sole expense, use its best efforts to prevent, investigate, and prosecute any unauthorised use of any Amazon EHT [LuxSCS] Intellectual Property.
The Commission notes that Luxembourg did not notify the Commission of any plan to grant the contested aid measure, nor did it respect the standstill obligation laid down in Article 108(3) of the Treaty.
AEU [LuxOpCo] agrees to promptly inform Amazon EHT [LuxSCS] of any such unauthorised use that comes to the AEU [LuxOpCo]'s attention.
Therefore, in accordance with Article 1(f) of Regulation (EU) 2015/1589, the contested tax ruling constitutes unlawful aid, put into effect in contravention of Article 108(3) of the Treaty.
To facilitate coordination of enforcement activities, AEU [LuxOpCo] shall consult with Amazon EHT [LuxSCS] before undertaking any actions to prevent such unauthorised use of Amazon EHT [LuxSCS] Intellectual Property. (b) AEU [LuxOpCo] may, at its sole expense, institute and conduct suits to protect its rights under this Agreement against infringement any may retain all recoveries from any such suits.« Se også licensaftalens punkt 2.3 (Vedligeholdelse) og punkt 9.5 (Overholdelse, databeskyttelse).
RECOVERY
Internt Amazon-dokument: Licensaftale, punkt 3.1.
THE RECOVERY OBLIGATION