Amazon is facing a tax bill of $US252 million from France covering the period 2006 - 2010.
The online retailer said at a Parliamentary hearing in London on Monday that it was fighting the claim, which is related to its practice of channeling European sales through Luxembourg.
Amazon is one of several American companies under pressure over the low level of tax they pay in Europe. Others include Google and Starbucks.
Members of the Public Accounts Committee invited the companies to give evidence.
Starbucks chief financial officer Troy Alstead was questioned about how the group's UK unit managed to report 13 years of losses.
"You're either running the business badly, or there's some fiddle going on," Austin Mitchell MP said.