No, the common criticism of Amazon (and companies like it) is that they cut deals with governments and/or use sneaky international accounting tricks (such as the famous "double Irish Dutch sandwich") to pay very low rates of tax relative to their profit (not revenue).
For example, Amazon UK paid zero Corporation Tax in the UK in 2023[0] despite recording £222m in profit. Meanwhile, a smaller UK bookstore has to pay 25% CT on its profits - and it can't afford the army of lawyers and accountants it would take to avoid this. And since Amazon is paying less tax, it can sell its books more cheaply, undercutting the smaller competitors.
Some might call this unfair. And I'm inclined to agree.
But to be honest, I still buy books off Amazon even though it makes me feel slightly icky. What's a boy to do?
>No, the common criticism of Amazon (and companies like it) is that they cut deals with governments and/or use sneaky international accounting tricks (such as the famous "double Irish Dutch sandwich") to pay very low rates of tax relative to their profit (not revenue).
>For example, Amazon UK paid zero Corporation Tax in the UK in 2023[0] despite recording £222m in profit.
But if you read the article you linked, you'd see it's a pretty straightforward investment deduction, rather than some dastardly tax evasion scheme? Amazon might be still doing the "double Irish Dutch sandwich" or whatever, but the article makes it clear that most of it is coming from investment tax credits.
>Amazon’s main UK division has paid no corporation tax for the second year in a row after benefiting from tax credits on a chunk of its £1.6bn of investment in infrastructure, including robotic equipment at its warehouses.
>The government’s “super-deduction” scheme for businesses that invest in infrastructure was introduced by Rishi Sunak when he was chancellor. It allowed companies to offset 130% of investment spending on plant and machinery against profits for two years from April 2021. Amazon booked a credit of £1.13m in 2021 under the scheme.
For example, Amazon UK paid zero Corporation Tax in the UK in 2023[0] despite recording £222m in profit. Meanwhile, a smaller UK bookstore has to pay 25% CT on its profits - and it can't afford the army of lawyers and accountants it would take to avoid this. And since Amazon is paying less tax, it can sell its books more cheaply, undercutting the smaller competitors.
Some might call this unfair. And I'm inclined to agree.
But to be honest, I still buy books off Amazon even though it makes me feel slightly icky. What's a boy to do?
[0] https://www.theguardian.com/technology/2023/jun/01/amazon-uk...