howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
#1
from the telegraph.
The company disclosed the investigation in a filing with US financial regulators. It was alleged that the company recorded sales of more than £7.6bn in Britain over the past three years without paying corporation tax.
Amazon does not disclose how much tax it pays in Britain.
However, its main UK subsidiary, Amazon.co.uk, is regarded as a "service company" rather than a retailer.
That means that the British company provides services to a parent company based in Luxembourg, where the tax rate is lower, the Guardian said.
HM Revenues & Customs declined to comment on whether it was examining Amazon. The report added that the investigation could be a routine audit.
Guest 710- Registered: 28 Feb 2011
- Posts: 6,950
#2
Why every pound 'earned' from the UK economy does not incur full UK tax, I don't know. Sponging, I calls it.
Ignorance is bliss, bliss is happiness, I am happy...to draw your attention to the possible connectivity in the foregoing.
Guest 703- Registered: 30 Jul 2010
- Posts: 2,096
#3
Simple answer to that Tom, it's because the people employed by the companies are smarter than the politicians and civil servants. It's their job to find the most tax efficient legal way of doing business.
A similar loophole has just been closed with the Channel Islands, which is why HMV based their online sales there.
Guest 698- Registered: 28 May 2010
- Posts: 8,664
#4
And it's because our tax rates are too high. And bear in mind that Amazon's UK sales attract UK VAT at 20%, a far greater tax grab than corporation tax on their profits would be.
I'm an optimist. But I'm an optimist who takes my raincoat - Harold Wilson
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
#5
yes but that is paid by their customers, amazon just add it on the price of their wares.
Guest 640- Registered: 21 Apr 2007
- Posts: 7,819
#6
People are nowadays very suspicious of big business and what these companies get up to..and can you blame them. The ordinary sod in the street pays his tax and these guys like Amazon do not play the game at all. Is this tax avoidance or tax evasion? High level trickery by smart ass accountants make it..ermm okay?
The Dispatches programme did a report a few months back on several government frontbenchers also who also employ highly clever tax avoidance/evasion schemes. Hardly the spirit of the beehive is it?
Guest 716- Registered: 9 Jun 2011
- Posts: 4,010
#7
# 4..........and that makes it all OK?............
Guest 710- Registered: 28 Feb 2011
- Posts: 6,950
#8
Ray,
You answer the question, How?
I asked the question, Why?
Ignorance is bliss, bliss is happiness, I am happy...to draw your attention to the possible connectivity in the foregoing.
Guest 698- Registered: 28 May 2010
- Posts: 8,664
#9
Reg they are paying tax somewhere (Luxembourg?) Why should a company be forced to pay tax in the most expensive place when they have a choice?
I'm an optimist. But I'm an optimist who takes my raincoat - Harold Wilson