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Frank Augstein/AP/Press Association Images

EU suspects Amazon's Luxembourg tax deal was illegal. Next up Apple and Ireland...

The preliminary ruling is putting more pressure on European Commission chief Jean-Claude Juncker.

EU REGULATORS TODAY said they believe Luxembourg gave illegal tax breaks to Internet shopping giant Amazon, renewing pressure on European Commission chief Jean-Claude Juncker over arrangements made when he was prime minister.

The European Commission’s preliminary findings into Amazon’s deals with the tiny duchy were the latest in a widening anti-trust probe by Brussels into sweetheart tax deals between major companies and several countries.

They also come months after the “Luxleaks” tax scandal, in which investigative journalists uncovered details of tax breaks for dozens of major firms during Juncker’s 19 years as premier of Luxembourg.

The Commission, the EU’s powerful executive body responsible for policing its internal market rules, was today revealing the formal argument for opening the investigation into Amazon’s 2003 deal with Luxembourg.

The probe looks at whether the tax breaks can be considered illegal state aid, which gives companies an unfair advantage and breaks EU rules designed to protect consumers and competitors.

“The Commission’s preliminary view is that the tax ruling… by Luxembourg in favour of Amazon constitutes state aid,” the Commission said.

It said there was “no indication at this stage that the contested measure can be compatible with the internal market”.

France EU Italy European Commission president Jean-Claude Juncker Christian Lutz / AP/Press Association Images Christian Lutz / AP/Press Association Images / AP/Press Association Images

And then there’s Apple and Ireland

The EU has opened similar probes into US tech icon Apple’s deals with Ireland, coffee-shop chain Starbucks with the Netherlands and Italian automaker Fiat, also with Luxembourg.

But Finance Minister Michael Noonan has said the case against Ireland was “weak” and that the country would fight any adverse finding against it through “every legal avenue open”.

He believed Ireland had been unfairly “caught in the crossfire” of sniping between big EU countries and the US on multinationals’ tax avoidance.

Additional reporting Peter Bodkin

READ: You paid more tax than expected last year on everything – except local property tax >

READ: How does the EU work? And why should I care? >

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    Mute Franklin Roosevelt
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    Oct 26th 2017, 5:05 PM

    What are the Catalans actually at now? They just seem to be ars*ing around

    95
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    Mute Mick Jordan
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    Oct 26th 2017, 5:45 PM

    @Franklin Roosevelt: He knows that the split between the separatists and unionists is too fine to call an election he could very well lose.

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    Mute Paul Devlin
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    Oct 26th 2017, 8:21 PM

    @Mick Jordan: well, the problem is that Abby election would be a de facto independence referendum. The separatist movement would probably win and Madrid would suspend autonomy again. They were waiting for promised guarantees from Madrid to respect any election result. Madrid refused

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    Mute Dave O Keeffe
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    Oct 26th 2017, 8:59 PM

    @Paul Devlin: I’m not sure the seperatists would win. He has pretty much clocked everything up since the day after the referendum. Has come off very indecisive and almost afraid to act.

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    Mute Paul Devlin
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    Oct 26th 2017, 9:21 PM

    @Dave O Keeffe: or unwilling to ratchet up the tension to the point of violence. That’s Madrid’s way. Every violent or coercive blow the Spanish government lands leads another section of the Catalan people to the separatist camp

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    Mute Dave O Keeffe
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    Oct 27th 2017, 2:49 PM

    @Paul Devlin: I agree, but if he wanted a result he should have gone for it two weeks ago when people were already being brutalised by Madrid.

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    Mute Deano Cracow
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    Oct 26th 2017, 5:18 PM

    He is out of his depth. Think of the Grand Old Duke of York.

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    Mute Dean Anderson
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    Oct 26th 2017, 5:30 PM

    he’s just making an eejit of himself at this stage.. I think the momentum is just gone now &the govt in Madrid must be just loving watching this now

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    Mute MK76
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    Oct 26th 2017, 5:57 PM

    FLIP-FLOP. No wonder SF claim such an affinity to this party.

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    Mute cormac o neill
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    Oct 26th 2017, 5:00 PM

    He knows they will be outcasted by Europe.. dopey stunt he played

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    Mute Franklin Roosevelt
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    Oct 26th 2017, 5:08 PM

    @cormac o neill: they’d have a few friends at first, maybe some Scandinavian and Eastern European countries. The UK if Corbyn gets elected even.

    Then the nation of Catalonia will become just the new normal and conservatives in Ireland, Britain and beyond will then pretend “Oh yeah, we were always cool with that idea”

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    Mute Dog Eat Fog
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    Oct 26th 2017, 5:37 PM

    Farcical. End of.

    29
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    Mute Joseph Dempsey
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    Oct 26th 2017, 5:35 PM

    This chap is all over the place, get on with it

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    Mute Conor Sheehan
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    Oct 26th 2017, 6:28 PM

    Just declare independence already.

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    Mute La Massa
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    Oct 26th 2017, 5:44 PM

    lol. The head of the catalan fascist government seems to be Lost…

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    Mute Malachi
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    Oct 26th 2017, 6:13 PM

    @La Massa: Fascist?

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    Mute La Massa
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    Oct 26th 2017, 6:47 PM

    @Malachi: yeah, a facist disgrace. A shame for Freedom and democracy… A bad joke.

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    Mute Sandra Clifford
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    Oct 26th 2017, 7:40 PM

    Looks like he bottled it

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    Mute Rachel Didleu
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    Oct 26th 2017, 8:20 PM

    Eeny Meeny Money Mo. Catch a blackbird by the toe. If it squeals let it go eeny meaney miney mo….no election

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    Mute alphanautica
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    Oct 26th 2017, 8:26 PM

    I think he knows if he called a second election then the majority of the population would vote and the result wouldn’t be for independence.

    Last time round most Catalan’s didn’t recognise the vote as legitimate and only the pro-
    independence folk were motivated to vote.

    Bit like the Easter Rising. Supported by very few, thought at the time to be crackpots and dreamers. Yet corrected history’s warm hand has made them out to be heroes.

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    Mute Reg
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    Oct 26th 2017, 7:32 PM

    This guy doesn’t seem to know the difference between his arse and his elbow.

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