Amazon has once again managed to avoid huge tax amounts. The company made a profit of nearly 450 billion Swedish kronor during the year of the epidemic in Europe. However, the unit in Luxembourg, which has only 5,262 employees, incurred losses of just over SEK 12 billion. This allowed them to avoid corporate tax altogether.
The Luxembourg unit currently handles sales to the United Kingdom, France, Germany, Italy, the Netherlands, Poland and Sweden. In addition to the corporate tax credit, they’ve also secured a tax credit promise for the next 560 million that will be earned. According to The Guardian, Amazon currently has 27 billion SEK in saved tax losses that can be used as tax to be paid on future profits.
Margaret Hodge, a member of the British Labor Party, hopes that England will follow US President Joe Biden’s proposal, among other things, to introduce a minimum corporate tax on large digital companies.
Amazon’s revenue has increased during the pandemic as our physical stores struggle, but it is still moving its profits to tax havens like Luxembourg to avoid paying its fair share of the tax. These large digital companies depend on our public services, infrastructure, and trained personnel. But unlike small businesses and hard-working taxpayers, the tech giants are failing to pay equitably the shared sum for the common good, she tells The Guardian.
Years of tax evasion
Paul Monaghan, CEO of Britain’s Fair Tax Foundation, thinks this is annoying, even for Amazon.
The bulk of Amazon’s UK revenue is booked overseas, in its loss-making Luxembourg subsidiary, which means that not only are they avoiding making a meaningful tax contribution now, but are likely to do so in the coming years due to the massive losses they incurred there. . , He told the Guardian.
A spokesperson for Amazon responded to the criticism by saying that “Amazon pays the tax that each country requires” and that “the corporate tax is based on profits, not revenue.”
Our profits were low considering our large investment and the fact that retail is a very competitive business with a low margin.