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by newaccountfool 4484 days ago
Amazon runs a business in the UK, they are owned by a parent company in Luxembourg that they pay the majority of all their revenue to, thus making almost no profit, thus paying very little in tax.

They run a business in the UK but pay almost nothing in tax, it should be fixed its not fair on small business owners who have to pay all of there tax and get hammered for it.

Can you not see how its a loop hole? It can so easily be fixed.
2 comments
icebraining 4484 days ago
Revenue sent to a parent company abroad is deducted as an expense? I find that hard to believe.

According to this article[1], what they actually do is send the payments directly to the Luxembourg company, and Amazon UK is just classified as a delivery company. That makes sense, and frankly, it doesn't shock me. I'm from Portugal and I just bought some comics from an US company. Should they start paying Portuguese corporate taxes?

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SpikeGronim 4484 days ago
Yeah, the reason AMZN doesn't pay UK tax is NOT because they are not profitable. It is because they legally avoid taxes by basing all their EU operations out of Luxemburg. Tax codes need reform world-wide to avoid this kind of bad behavior.
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icebraining 4484 days ago
So if Etsy sells something to Portugal, should you pay Portuguese corporate taxes?

I'm sure we won't mind the income ;)

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newaccountfool 4484 days ago
That's different Amazon actually has property in the UK, large warehouses, staff among other things.
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icebraining 4484 days ago
Etsy also ships physical things, the only difference is that they subcontract to a delivery company, who obviously doesn't pay taxes over Etsy's profits.

But actually, it's not different, because Amazon also subcontracts, the only difference is that the subcontracted delivery company is named... Amazon. So what they're doing is the same as any companies that ships products to the UK, except that they happen to own both companies and they have similar names.

I fail to see the reason why should Amazon UK pay for the profits earned by Amazon Luxembourg, when DHL or whoever don't pay for Etsy's profits that come from the UK.

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newaccountfool 4484 days ago
Shall we remove all there distribution centres then? Since they can just have a global warehouse in Luxembourg? Since they don't need them.
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