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Silicon Valley Scrooges sidestep debt to society through tax avoidance to the tune of $100bn

Tom 38 Silver badge

Where to allocate profits and costs is quite difficult however. Lets take AWS, and assume that all AWS service development and operation happens in Seattle (I know it isn't accurate, but just as an example). If they sell £1bn of AWS services in eu-west-1 (Ireland) to customers in the UK, the direct costs of selling and supporting those services in the UK is minimal, so how much of that £1bn should be counted as profit in the UK?

Obviously some of it should be, but most of it would be costs to Amazon Ireland for operating eu-west-1, some of it should also be costs to the US business for developing and maintaining those services, and how do you calculate those proportions?

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