Over the Amazon tax thing:
How can this happen? Because the UK’s ‘open for business’ policy is to not ask questions on tax. We’ll let a multinational do what it likes in its structuring to avoid upsetting them – inclduing letting them say that their sales really don’t take place here when they very obviously do – dammit, they’re even accounting for VAT on them here but still say they’re not in the UK.
It\’s not the UK. It\’s the EU.
Any company within the EU can supply to any consumer within the EU. That\’s it, full stop.
The company will be taxed upon the basis of its domicile.
The consumers will be taxed upon the basis of their domicile (umm, actually, residence of place of delivery but small difference). That\’s why VAT on a physical delivery to a consumer in the UK is at UK rates not Luxembourg. That\’s also why you cannot buy fags and booze at Luxembourg duty rates for delivery to a UK address.
It is possible to argue that this should not be the case: but if you do so you should remember that this is not the UK government pleasing the corporations. This is hard baked in to the Treaty of Rome.
And then HMRC have the gall to say the corporate tax gap on avoidance is tiny – maybe £1 billion. I say it’s £12 billion. That’s because I sgtart with the economic reality of the accounts
It just ain\’t tax avoidance when the entire structure is part of the constitution of the entire continent. This has been specifically written into the law which governs us all.