Reply to post: Worse than the Guardian

UK.gov cloud fave Amazon comes under fire for tax bill

Headley_Grange Silver badge

Worse than the Guardian

I'm boycotting Amazon because of the way they treat employees - IOW, I don't like them, but this is a crap report . At least the Gruaniad reported the facts. From yesterday's article in the Graun:

"The company received a tax credit of £1.3m from the UK authorities, which it will be able to deduct from future tax bills. Pre-tax profits halved from £48m in 2015 to £24m last year."

So the profit halved, and so did the tax.

Note also (Graun): " Amazon Europe, which is based in Luxembourg and aggregates the billions of pounds of sales the retailer makes from individual countries across the continent, reported a pre-tax profit of €59.6m last year. As a result the company, which clocked up €21.6bn in sales across Europe last year, had a tax bill of just €16.5m." So that's an approximate tax rate of about 27%

Finally - as one poster pointed out above - some of the reduced profits came from increased pay, benefits and bonuses to employees. Given that income tax is generally higher than corp tax then if any of those employees is UK based then the exchequer has probably got a good deal, even ignoring the VAT that the it will probably make from the increased disposable income.

Amazon's business model of making very small profit on a massive sales turnover will always result in low taxes - get over it. If you're going to get angry at Amazon then it should be for the way staff and contractors are treated; Amazon can afford to do better, they should do better and they will if their customers demand it.

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