On Friday, the 16th of August 2019, the Seattle-based tech conglomerate, Amazon.com Inc., engaged in e-commerce, cloud computing, artificial intelligence and a many more, had defeated an appeal filed by the US Internal Revenue Service (IRS), in effect what would be settling the online retailer’s $1.5 billion dispute regarding its tax treatment on transactions related to its Luxembourg subsidiary.
Besides, at a three to zero decision, the 9th US Circuit court of Appeals in Seattle had held on to a 2017 hearing by US Tax Court related to a dispute over Amazon’s transfer of intangible asset to its Luxembourg unit, dubbed as Amazon Europe Holdings Technologies, back in the 2005s and 2006s.
In legal terms, intangible assets could be customer lists, software alongside intellectual properties, however, IRS was seeking for a broader definition of intangible assets in its appeal, eventually which would have made Amazon.com Inc.
a potential subject to tax fraud and heightened Amazon.com Inc.’s tax bill. Nonetheless, the Seattle-based retailing tycoon had cautioned its investors earlier that the company could face substantial amount in tax liabilities, if a 2017 ruling by US Tax Court was reversed.
Meanwhile, followed by the reveal of the Appeal Court’s verdict on Friday (August 16th), neither IRS nor Amazon.com Inc. responded immediately while being asked for comments, while their lawyers were not available as well.