Amazon’s UK operation generated £4.2bn of sales last year, but it used a subsidiary in Luxembourg to help it reduce its corporation tax bill in the country to just £2.4m in 2012. According to documents filed at Companies House, the company received £2.5m in government handouts over the same period.
It\’s a pretty strange complaint really. Leave aside all the EU Single Market stuff, the double taxation treaty with Luxembourg and all: it\’s all entirely legal whatever anyone says.
And look at the company\’s profits themselves. In 2012 Amazon as a whole made a $39 million loss.
Why would anyone at all expect tax revenue from a tax on profits at a company that doesn\’t make profits?
And even better: under Ritchie\’s unitary taxation system Amazon wouldn\’t even have paid £2.4 million in corporation tax. Instead it would have got a tax credit of $3 or $4 million. UK sales being around 10% of total global.