Amazon’s dodgy escape from tax!

By:   |   June 25th, 2012   |   Business
Amazon

Amazon.co.uk, amongst the largest retail website with over £3.3 billion sales in the last year, escapes from paying no corporation tax. Cheeky buggers! Amazon sales have been through the sky. With 1 in 4 books that are sold in the UK being sold through Amazon. Strangely it is questionable that why would such big networks be involved in risky tax dodging scam? Are they not making enough money?! Surely this cannot be the case seeing how big and popular the company is. Obviously obeying government laws is not their number one priority. Tax officials have launched an investigation into whether the online retail website Amazon has avoided tax by officially allocating its UK sales to a company based in Luxembourg or if they are truly innocent.

 

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Parent company Amazon.com with the US Securities and Exchange Commission (SEC) show the tax inquiry into the UK operation, focus on a period when ownership of the British business was transferred to a Luxembourg company. But the game of abuse is that all payments go directly to Luxembourg. The UK business is simply acting as a delivery organization. Of course, Amazon is hardly alone in shifting money around to different countries to dodge taxes. Like many multi-national companies, Amazon arranges its affairs across the countries to minimize its overall tax bill in the UK.

 

The Guardian have asked Amazon why it has not paid UK corporation tax on the £3bn it takes out of the economy. The company declined to answer any specific questions related to its tax affairs.  Richard Murphy of the Tax Justice Network has recently re-written tax rules but Amazon did not bother to justify any investigation. The most highlighted news is that company has switched its ownership of the UK business to Luxembourg.

 

In news Ottakars’ founder says,

“Amazon is a dangerous force that is damaging high street book trade and threatens to undermine the nurturing of new talent”.

 

Amazon declined to discuss its tax affairs but has thrown a statement how Amazon EU serves tens of millions of customers and sellers throughout Europe. We have a single headquarter in Luxembourg with hundreds of employees to manage this complex operation. The question is that where are the UK authorities now? Such an issue has been created and still Amazon have not paid any consequences.

 

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