The IRS wrongly calculated taxes Amazon.com Inc. owed based on a cost-sharing arrangement that shifted assets from the U.S. to subsidiaries in Europe, a federal appeals court ruled Aug. 16.
The IRS adjusted Amazon’s taxable income by $2.2 billion for 2005 and 2006, arguing the company undercharged for transferred assets. That meant an additional $234 million tax bill for Amazon in those years, but the company’s financial statements estimated the price tag could rise to $1.5 billion for other tax years.
Amazon challenged the agency’s method for valuing the company’s pre-existing intangible assets, which factored in residual-business assets ...
Learn more about Bloomberg Tax or Log In to keep reading:
Learn About Bloomberg Tax
From research to software to news, find what you need to stay ahead.
Already a subscriber?
Log in to keep reading or access research tools.