Reuters: Technology News: Amazon fighting $234 million tax deficiency in Tax Court : filing

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Amazon fighting $234 million tax deficiency in Tax Court : filing Jan 15th 2013, 16:00 Tweet Share this Email Print Related News IRS delays start of tax filing season to January 30 Tue, Jan 8 2013 Swiss bank Wegelin to close after guilty plea Fri, Jan 4 2013 Judge rejects part of Apple App Store suit vs Amazon Wed, Jan 2 2013 Mon, Dec 31 2012 WRAPUP 7-'Fiscal cliff' tumble looms despite U.S. Senate efforts Mon, Dec 31 2012 Analysis & Opinion Essential reading: Retailers fear payroll tax will cut consumer spending, and more The big muniland tax exemption dud Related Topics Investing and Taxes Simplified » Tech » Regulatory News » Breakingviews » A box from Amazon.com is pictured on the porch of a house in Golden, Colorado July 23, 2008. Credit: Reuters/Rick Wilking By Patrick Temple-West WASHINGTON | Tue Jan 15, 2013 11:00am EST WASHINGTON (Reuters) - Amazon.com Inc. is challenging a $234 million U.S. tax bill, contesting Internal Revenue Service tax calculations for cash transfers between the parent company and its European subsidiaries, according to a court filing. The case centers on the pricing of payments among company units, an issue on which the government has lost some multi-million dollar cases against big companies. The IRS notified Amazon of the tax deficiency in November 2012. The agency is also contesting taxes on Amazon's net operating losses, among other issues, according to the December 28, 2012 court filing. "Transfer pricing" refers to how multinational corporations value goods and services moving across international borders from one corporate unit to another. The prices are frequently managed to reduce corporations' global tax costs. Amazon argued that the IRS is overestimating the value of Amazon's "intangible property," which includes computer software, trademarks and marketing assets, according to the court filing. The IRS argued that Amazon's European subsidiaries made taxable payments to its U.S. parent company based on a low-dollar estimate. The IRS used an estimate method for calculating transfer pricing taxes that was overturned in a 2009 court decision involving Veritas Software Corp, now part of Symantec Corp, Amazon said. Because the case was filed in U.S. Tax Court, Amazon is not required to pay the tax bill until the outcome of any court decision. The case was first reported in the trade publication Tax Analysts. (Additional reporting by Nanette Byrnes; Editing by Kim Dixon and Dan Grebler) Investing and Taxes Simplified Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

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