Less Ads, More Data, More Tools Register for FREE

Amazon UK unit pays $8 mln corporation tax as sales hit $17.5 bln

Wed, 16th Sep 2020 10:04

By Tom Bergin

LONDON, Sept 16 (Reuters) - Amazon.com Inc's main UK
subsidiary, Amazon UK Services Ltd., paid just 6.3 million
pounds ($8 million) in corporation tax in 2019 despite the group
reporting over $17.5 billion in sales in Britain, accounts
published on Wednesday show.

Amazon said the low figure reflected the underlying
condition of its UK business.

“Corporation tax is based on profits, not revenues, and our
profits have remained low given retail is a highly-competitive,
low margin business and we continue to invest heavily,” the
company said in a statement.

Amazon does not publish its UK profits. British sales are
reported largely through a web of Luxembourg-based companies,
principally Amazon EU Sarl, which is also subject to UK tax on a
portion of its earnings. However, that company reported a tax
credit of 294 million euros last year.

Amazon has faced criticism for its tax practices in the UK
for years and is currently fighting a legal battle with the
European Commission over claims, which Amazon denies, that it
received unfair tax advantages from Luxembourg.

Last week, the company published a report on its tax
contribution to Britain which said the group incurred taxes of
293 million pounds in 2019.

However, that figure was almost entirely made up of national
insurance, a form of social security tax on employees' wages,
business rates, a form of local property tax, taxes on imported
goods and stamp duties on land purchases.

Other retailers say Amazon's tax efficient structure gives
the Seattle-based group an unfair advantage over British rivals
who face larger corporation, payroll and local tax bills.

The 2019 accounts for Amazon UK Services Ltd, which employs
over 25,000 people, show the company also saved 17 million
pounds in tax due to the UK’s treatment of share awards to
staff, which is more generous than the treatment offered by some
other countries.
($1 = 0.7748 pounds)
(Reporting by Tom Bergin; editing by Carmel Crimmins)

More News

UPDATE 1-IMF will explore options for re-allocating reserves to raise $100 bln for poor countries

(Adds quotes)WASHINGTON, June 13 (Reuters) - The International Monetary Fund on Sunday welcomed the Group of Seven's support for expanding the global lender's emergency reserves by $650 billion and said it would work with members on ways to provid...

Today 16:58

UPDATE 1-G7 leaders agreed to coordinate China approach much more closely - Canada PM Trudeau

(Releads with fresh quotes from Trudeau about China, background)June 13 (Reuters) - Group of Seven leaders on Sunday agreed to coordinate their response to the challenges posed by China "much much more closely", Canadian Prime Minister Justin Trud...

Today 16:52

UPDATE 1-Macron says we love sausage but let's not waste time on this

(Adds quotes)CARBIS BAY, France, June 13 (Reuters) - President Emmanuel Macron on Sunday said that France respects Britain's sovereignty but it is time to end rows over sausages and focus on more serious issues.Tensions between Britain and the Eu...

Today 16:30

UK records another 7,490 COVID cases, 8 deaths

CARBIS BAY, England, June 13 (Reuters) - The United Kingdom has recorded another 7,490 daily COVID-19 cases and the deaths of 8 people who tested positive for the virus within 28 days, official data shows.The 7,490 cases was down slightly from th...

Today 16:01

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.