(Reuters) – Amazon.com Inc (NASDAQ:AMZN) on Thursday won an increasingly than $1.5 billion tax dispute with all the Interest rates over transactions involving a Luxembourg unit regarding green decade ago.

Judge Albert Lauber in the U.S. Tax Court rejected a range of IRS arguments, determined that on several occasions the business abused its discretion, or acted arbitrarily or capriciously.

Amazon's ultimate tax liability on the decision weren’t immediately clear.

The world's largest online retailer claims the case involved transactions in 2005 and 2006, and may boost its federal goverment tax bill by $1.5 billion plus interest. Furthermore, it said a loss of profits could add "significant" tax liabilities in the future.

Amazon made just $2.37 billion of profit in 2019, four times exactly what it manufactured in the four prior years combined, on revenue of $136 billion.

Lauber's decision "should shield Amazon from potentially significant tax obligations on the IRS covering years in the evening ones covered inside the lawsuit," said Colin Sebastian, an analyst at Baird Equity Research.

The IRS declined to comment. Amazon and it is lawyer John Magee, a person at Morgan, Lewis & Bockius, also declined to comment.

Before entering the White House, President Mr . trump contended that Amazon, run by billionaire Jeff Bezos, still did not pay enough taxes, once accusing it on Fox News of "getting away from with murder tax-wise."

The IRS case involved "transfer pricing," which arises when different units of multinational companies transact with one another.

Amazon argued that the IRS overestimated the need for "intangible" assets, just like software and trademarks, it had moved to a Luxembourg unit, Amazon Europe Holding Technologies SCS.

Lauber said Amazon did this using a plan called "Project Goldcrest," to have "vast bulk" of income from its European businesses taxed in Luxembourg at the "extremely low rate."

The IRS countered that Amazon's dealings cant be found finished at "arm's length," or maybe improperly lowered its domestic tax bill.

"This is certainly perfect for everybody, not only for Amazon," said Michael Pachter, a Wedbush Securities analyst who’s got practiced tax law. "It reaffirms that this tax law permits wholly-owned subsidiaries can license intellectual property" as Amazon did. "Totally legal, totally legal."

Amazon has stated this could face additional tax bills in Europe if authorities in Brussels conclude that prior rulings by Luxembourg tax officials amounted to improper "state aid" that gave it an unfair edge on rivals.

A formal probe into those rulings began in October 2019, Amazon has stated.