Usual Guardian nonsense:
Amazon.co.uk, Britain\’s biggest online retailer, generated sales of more than £3.3bn in the country last year but paid no corporation tax on any of the profits from that income – and is under investigation by the UK tax authorities.
Quite. The company is based in Luxembourg. So, it pays corporation tax in Luxembourg, not the UK.
The Guardian asked Amazon why it paid no UK corporation tax on the £3bn it takes out of the economy.
Eh? Supplying things that people want is taking money out of the economy now? Seriously, have we become again so mercantilist that specie flowing overseas, imports, is to be regarded as shrinking our economy?
Instead of, you know, the correct view which is that imports are the whole fucking point of trade? That Johnny Foreigner can provide us with what we want to consume better and cheaper than our neighbours can?
Richard Murphy, of the Tax Justice Network, said rewriting tax rules to prevent arrangements such as those used by Amazon.co.uk would be a huge task. \”The key issue is, what is sold here and what is sold \’into\’ here? The answer is to deem distance sellers [as] resident in the UK with regard to their sales made here. That would be a big issue to take on.\”
Ignorant tosspottery. For the purpose of booze and fags taxes for example distance sellers are already deemed to be resident in the place where delivery takes place. The problem is much deeper than that. It\’s that it\’s built into the EU Constitution that a company (or individual) can sell something to anywhere in the 27 EU countries and then pay profits (or income) taxes on where they are resident, not where they have sold to. This is part of the very foundation of the Single Market.
You\’d have to rewrite the Treaty of Rome to get rid of this: good luck with that.
But you knew that our national tax expert would get this wrong, didn\’t you?