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Amazon paid zero corporate tax on its European business last year, despite record sales-latest retail technology news from around the world

Amazon didn’t pay corporate tax on its European operations last year, despite breaking sales records, as MP continues what it calls a “horrible tax avoidance campaign.”

Retailers raised a whopping € 44 billion (£ 38 billion) across the European market last year, according to a corporate filing in Luxembourg, where Amazon’s EU headquarters are located.

Despite the Luxembourg division of the Amazon, which handles sales in the United Kingdom, Germany, France, Italy, Spain, Sweden and the Netherlands, it lost € 1.2 billion (£ 1.04 billion). This means that the corporate tax has been reduced to zero in Japan. Parents report.

Amazon still has to pay corporate tax in the UK, but most of the revenue from Amazon is offshore at a subsidiary in Luxembourg, which is a significant loss.

This is because Amazon’s UK website is operated by Amazon EUSarl, a Luxembourg-based entity.

The € 1.2 billion loss posted this year actually means that a tax credit of € 56 million was granted to offset future taxes when Amazon made a profit domestically. In other words, a loss carried forward worth 2.7 billion euros has been accumulated. ..

read more: Amazon is entering the “golden age” as it forecasts first-quarter sales to rise 44%.

Labor Party Margaret Hodge said, “Amazon’s earnings surged under a pandemic while High Street was struggling, but benefited tax havens like Luxembourg to avoid a fair tax burden. We continue to shift. “

“All of these big digital companies rely on our public services, infrastructure, and an educated and healthy workforce. But unlike small businesses and hard-working taxpayers, high-tech giants You cannot pay fairly for the public good for the public good.

“President Biden has proposed a new, fairer system for taxing large and digital companies, but Britain does not support reform. Silence is deafening.”

Amazon’s Luxembourg hasn’t analyzed national sales, but a separate account in the United States shows that UK revenues increased 51% to a record £ 19.4 billion last year.

An Amazon spokeswoman said: “Amazon pays all taxes needed in every country in which it operates. Corporate taxes are based on profits, not revenues, and large investments and retailers are highly competitive, low-margin businesses. Given the fact, profits remain low.

“Since 2010, we have invested well over € 78 billion in Europe, many of which have created thousands of new jobs, generated significant local tax revenues and supported small European businesses. Invested in the infrastructure to do. “

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Amazon paid zero corporate tax on its European business last year, despite record sales-latest retail technology news from around the world

Source link Amazon paid zero corporate tax on its European business last year, despite record sales-latest retail technology news from around the world

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