Amazon is accused of ‘appalling tax avoidance’ after it emerges the corporate’s European arm scored file gross sales of £38billion final 12 months… however did not pay a penny in company levy
- Amazon’s European enterprise did not pay company tax final 12 months
- It was regardless of gross sales rocketing from £27.9billion in 2019 to £38billion in 2020
- Accounts filed in Luxembourg confirmed losses soared from £580m to £1billion
- Due to this, Amazon obtained tax credit score which it could possibly deduct from future payments
- An Amazon spokesman yesterday insisted it ‘pays all of the taxes required’
Amazon’s European enterprise paid no company tax final 12 months regardless of file gross sales of £38billion.
Gross sales rocketed from £27.9billion in 2019 because the pandemic fuelled demand for web buying.
The worldwide big racked up revenues of greater than £4million an hour in 2020. Nonetheless, it paid no company tax after recording its greatest annual loss to date.
Accounts filed in Luxembourg, the place the corporate’s European division is predicated, confirmed losses soared from £508million to £1billion. Due to this, Amazon really obtained a tax credit score – cash it could possibly deduct from future payments – price £49million.
The corporate has denied claims that it struck a ‘sweetheart deal’ with Luxembourg tax chiefs. Paul Monaghan, of the Truthful Tax Basis, mentioned: ‘These figures are mind-blowing, even for Amazon.
Amazon’s European enterprise paid no company tax final 12 months regardless of file gross sales of £38billion, skyrocketing from £27.9billion in 2019 because the pandemic fuelled demand for web buying (inventory picture)
‘We’re seeing accelerated market domination throughout the globe on the again of revenue that continues to be largely untaxed – permitting it to unfairly undercut native companies that take a extra accountable strategy.’
Labour MP Dame Margaret Hodge accused Amazon of a ‘relentless marketing campaign of appalling tax avoidance’. She advised The Guardian: ‘These large digital corporations all depend on our public companies, our infrastructure and our educated and wholesome workforce. However, not like smaller companies and hard-working taxpayers, the tech giants fail to pay pretty into the widespread pot for the widespread good.’
The Truthful Tax Basis mentioned Amazon had now constructed up greater than £1.9billion in ‘carry-forward’ losses, which it could possibly use to cut back future tax payments.
Mr Monaghan mentioned: ‘The majority of Amazon’s UK revenue is booked offshore within the huge loss-making Luxembourg subsidiary, which implies that not solely are they not making a significant tax contribution now, however are unlikely to take action for years to come back given the large carried ahead losses they’ve now constructed up there.’
Labour MP Dame Margaret Hodge (pictured) accused Amazon of a ‘relentless marketing campaign of appalling tax avoidance’
The agency’s gross sales rocketed within the UK in 2020 – up from £12.6billion to £19.1billion, in response to filings within the US. Mr Monaghan mentioned Amazon had paid an efficient company tax fee of simply 9.8 per cent on international income over the previous decade. The UK fee is nineteen per cent. US President Joe Biden lately proposed a tax crackdown on know-how giants and different multinational corporations amid concern they don’t seem to be paying sufficient.
He has referred to as for a brand new system that might pressure corporations to pay extra within the international locations they function in alongside a world minimal company tax fee.
An Amazon spokesman yesterday insisted it ‘pays all of the taxes required’. He added: ‘Company tax is predicated on income, not revenues, and our income have remained low.’ He careworn the agency had invested over £56billion in Europe since 2010, serving to to create ‘many hundreds of latest jobs’, important native tax income and help for small European corporations.