Amazon Had Sales Income of $53 Billion in Europe in 2020 But Paid No Corporation Tax

Fresh questions have been raised over Amazon's tax planning after its latest corporate filings in Luxembourg revealed that the company collected record sales income of $53 billion in Europe last year but did not have to pay any corporation tax to the Grand Duchy. From a report: Accounts for Amazon EU Sarl, through which it sells products to hundreds of millions of households in the UK and across Europe, show that despite collecting record income, the Luxembourg unit made a $1.4 billion loss and therefore paid no tax. In fact the unit was granted $67.3 million in tax credits it can use to offset any future tax bills should it turn a profit. The company has $3.25 billion worth of carried forward losses stored up, which can be used against any tax payable on future profits. Margaret Hodge, a Labour MP who has long campaigned against tax avoidance, said: "It seems that Amazon's relentless campaign of appalling tax avoidance continues." "Amazon's revenues have soared under the pandemic while our high streets struggle, yet it continues to shift its profits to tax havens like Luxembourg to avoid paying its fair share of tax. These big digital companies all rely on our public services, our infrastructure, and our educated and healthy workforce. But unlike smaller businesses and hard-working taxpayers, the tech giants fail to pay fairly into the common pot for the common good. President Biden has proposed a new, fairer system for taxing large corporations and digital companies but the UK has not come out in support of the reforms. The silence is deafening. The government must act and help to grasp this once-in-a-generation opportunity to banish corporate tax avoidance to a thing of the past."Read more of this story at Slashdot.
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