Amazon expected to face new questions over tax practices
In the UK, Amazon may face new questions in parliament about its British tax status, reports the Guardian. A recent investigation conducted by the Guardian suggests that British authorities could soon ‘take a much tougher line on taxing Amazon’s multibillion-pound British operations’, with MPs ‘ready to haul Amazon back to parliament to answer new questions’. The Guardian’s investigation found that the retailer is ‘pushing the tax rulebook to its limits to minimise its tax bill’. Amazon is not classified as a permanent establishment in Britain, which, according to the Guardian, allows the company to avoid paying ‘many tens of millions of pounds in tax’ despite the fact that it has ‘taken £12 billion (A$18.5 billion) from online shoppers in the UK in the last four years’. In 2012, Amazon paid £3.2 million (A$4.93 million) in corporation tax on sales of £320 million (A$493 million) in Britain, and received £2.5 million (A$3.85 million) in government grants, as well as significant tax breaks. A spokesperson for the retailer said, ‘Amazon pays all applicable taxes in every jurisdiction that it operates within’, while tax officials refused to comment directly on the case.
Category: International news