Amazon tax bill halved past year to £7.4 million

Share

Amazon's latest tax return created its usual amount of controversy, with everyone suddenly an expert in global taxation laws and thinking it a bit odd that a company so big can somehow end up paying what appears to be such a small tax tab in the process.

Amazon halved its United Kingdom corporation tax bill to just £7.4m, but a series of deductions meant that it actually received a credit to deduct from its future payments to HMRC.

American tech companies have been accused in the past of taking advantage of complicated cross-border regulations in order to minimise tax; Amazon itself halved its United Kingdom corporation tax bill in 2016.

The retail giant justifies the fall by insisting that, while revenues increased, profits have fallen from £48.5 million to £24.3 million.

Amazon's sales in the United Kingdom are made through a separate entity but sales are aggregated across a Europe-wide balance sheet.

Revenue from the company's United Kingdom retail sales are funnelled through a separate company in Luxembourg and have not been made public yet.

Amazon UK halves corporation tax to £7.4m as sales soar to £7bn
Amazon's biggest UK division has slashed its corporation tax even as sales surge

Revenue at the UK Services division doesn't account for Amazon's United Kingdom retail sales income which exceeded £7.3 billion in 2016, according to US filings.

And none are more furious than the members of the Booksellers Association, which would like the UK's tax laws to be ripped up to try to stem this yearly Amazon tax outrage.

"This means that the cost of doing business wipes out the small profits they declare in their United Kingdom accounts, and they end up paying little tax".

"It is a scandal they are deliberately manipulating the way they do their business for no other objective than to avoid tax", Mr Hodge said.

"I don't use them at all and I would urge Sun readers to do the same and not use them. We've invested over €20bn in Europe since 2010, and expect to hire 15,000 new employees this year, bringing our total permanent European workforce to over 65,000 people".

More news: Texas Sales Tax Holiday This Weekend - Aug. 11-13
More news: Manchester United in talks with Zlatan Ibrahimovic over new deal
More news: $393M Winning Mega Millions Ticket Sold in IL

Share