{"id":148784,"date":"2021-05-04T14:58:34","date_gmt":"2021-05-04T14:58:34","guid":{"rendered":"https:\/\/www.thecanary.co\/?p=1423960"},"modified":"2021-05-04T14:58:34","modified_gmt":"2021-05-04T14:58:34","slug":"amazon-paid-zero-corporation-tax-in-europe-last-year-as-income-soared","status":"publish","type":"post","link":"https:\/\/radiofree.asia\/2021\/05\/04\/amazon-paid-zero-corporation-tax-in-europe-last-year-as-income-soared\/","title":{"rendered":"Amazon paid zero corporation tax in Europe last year as income soared"},"content":{"rendered":"<p>Amazon did not have to pay any <a href=\"https:\/\/www.theguardian.com\/technology\/2021\/may\/04\/amazon-sales-income-europe-corporation-tax-luxembourg\">corporation tax<\/a> in Europe last year despite record sales income of \u20ac44bn.<\/p>\n<p>Amazon sells products to households in the UK and many European countries through Amazon EU Sarl. Despite the record amount made, there was a \u20ac1.2bn loss at Amazon&#8217;s Luxembourg unit, which meant it paid no tax.<\/p>\n<p>The Luxembourg unit looks after sales for the UK, Spain, Germany, France, Poland, Sweden, the Netherlands, and Italy.<\/p>\n<p>If the Luxembourg unit were to make a profit at any point, it has been granted \u20ac56m in tax credits to go towards tax bills.<\/p>\n<p>&nbsp;<\/p>\n<p><span class=\"ZH9NhwiBRLVHriBuX9S116c7ygczOUYeAetLaPd3RMfql8SzdN0TUo52VCfxb7XJlGYj4vKrshAJFZW3OqsjEnQntapPMwIg6b\"><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">I don&#39;t mind paying tax. <br \/>In fact, I do it gladly. <br \/>Until I discover that I&#39;m paying more than Amazon.<a href=\"https:\/\/t.co\/lXuErPWvYv\">https:\/\/t.co\/lXuErPWvYv<\/a><\/p>\n<p>&mdash; George Monbiot (@GeorgeMonbiot) <a href=\"https:\/\/twitter.com\/GeorgeMonbiot\/status\/1389460569883914241?ref_src=twsrc%5Etfw\">May 4, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/span><\/p>\n<h5>Tax avoidance<\/h5>\n<p>The news has been hailed as indicative of large, multinational companies continuing to avoid paying corporation tax.<\/p>\n<p>The Fair Tax Foundation called the scale of tax-dodging &#8220;mind-blowing&#8221;, <a href=\"https:\/\/twitter.com\/FairTaxMark\/status\/1389520190774386689\">saying<\/a>:<\/p>\n<blockquote><p>In essence, we are seeing exponentially accelerated market domination by Amazon across the globe on the back of income that continues to be largely untaxed \u2013 allowing Amazon to unfairly undercut local businesses that take a more responsible approach.<\/p><\/blockquote>\n<p>In the UK, Amazon had sales of <a href=\"https:\/\/www.bbc.co.uk\/news\/business-54082273\">\u00a313.73bn<\/a> during 2019, but only paid \u00a3293m in tax. Furthermore, during 2020, the company had income of $20bn in the US. According to the Institute on Taxation and Economic Policy, Amazon <a href=\"https:\/\/itep.org\/amazon-has-record-breaking-profits-in-2020-avoids-2-3-billion-in-federal-income-taxes\/#:~:text=The%20company's%20U.S.%20income%20in,avoided%20%242.3%20billion%20in%20taxes.\">avoided<\/a> paying $2.3bn in income tax on those earnings.<\/p>\n<p>Many large companies have headquarters in Luxembourg. The country is ranked as <a href=\"https:\/\/iff.taxjustice.net\/#\/profile\/LUX\">number six<\/a> in the world in the Tax Justice Network&#8217;s Corporate Tax Haven Index.<\/p>\n<p><span class=\"8TwVnsuRq5Z0y3GBai\"><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Nothing could better illustrate how our tax system is broken<\/p>\n<p>Huge multinational corporations are not paying their fair share while the building blocks of society crumble through lack of funding. This has to change<a href=\"https:\/\/t.co\/qcFi5Vx7Tz\">https:\/\/t.co\/qcFi5Vx7Tz<\/a><\/p>\n<p>&mdash; Caroline Lucas (@CarolineLucas) <a href=\"https:\/\/twitter.com\/CarolineLucas\/status\/1389530247763308546?ref_src=twsrc%5Etfw\">May 4, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/span><\/p>\n<h5>A minimum corporation tax<\/h5>\n<p>Joe Biden has <a href=\"https:\/\/www.vox.com\/policy-and-politics\/22381673\/global-minimum-tax-janet-yellen-oecd\">proposed<\/a> several global tax reforms, including a minimum global corporation tax rate. The US is currently working with the OECD to try and reach an agreement.<\/p>\n<p>Both France and Germany have <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-04-27\/france-germany-support-u-s-21-tax-plan-for-corporations\">backed<\/a> a 21% minimum tax rate on multinational companies. In contrast, the UK has <a href=\"https:\/\/www.thelondoneconomic.com\/business-economics\/sunak-remains-silent-on-bidens-plan-to-create-a-global-tax-floor-264228\/\">not responded<\/a> to the proposal, despite being urged to by opposition MPs.<\/p>\n<p><span class=\"EetzHsIU0kPl94NOf5pcdY6GXt2aA7hgJUOCMcu2mZxAqr1QeVInoLgqLDphwKnVwi4\"><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Today we learn Amazon had sales income of \u20ac44bn in Europe in 2020 but paid no corporation tax.<\/p>\n<p>Our country should be loudly backing Biden&#39;s plans to end this. It is appalling that Conservative Ministers keep refusing to do so.<a href=\"https:\/\/t.co\/QI7OJ3vwWv\">https:\/\/t.co\/QI7OJ3vwWv<\/a> <a href=\"https:\/\/t.co\/abjdj6DqAe\">pic.twitter.com\/abjdj6DqAe<\/a><\/p>\n<p>&mdash; James Murray (@jamesmurray_ldn) <a href=\"https:\/\/twitter.com\/jamesmurray_ldn\/status\/1389497546268098560?ref_src=twsrc%5Etfw\">May 4, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/span><\/p>\n<p><span class=\"wVSdcG1aqk3urFEgX\"><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">This thread. Every word.<\/p>\n<p>If we judge a society and a system by how it treats its less fortunate, free market capitalism in Britain is an absolute disaster. <\/p>\n<p>This morning it was announced that Amazon had European sales income of \u00a338bn in 2020, but paid no corporation tax at all <a href=\"https:\/\/t.co\/gT6C7LSQPf\">https:\/\/t.co\/gT6C7LSQPf<\/a><\/p>\n<p>&mdash; Samuel West <img src=\"https:\/\/s.w.org\/images\/core\/emoji\/13.0.1\/72x72\/1f499.png\" alt=\"?\" class=\"wp-smiley\" style=\"height: 1em; max-height: 1em;\" \/> (@exitthelemming) <a href=\"https:\/\/twitter.com\/exitthelemming\/status\/1389505908640784386?ref_src=twsrc%5Etfw\">May 4, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/span><\/p>\n<p>A spokesperson for Amazon told the <a href=\"https:\/\/www.theguardian.com\/technology\/2021\/may\/04\/amazon-sales-income-europe-corporation-tax-luxembourg\"><em>Guardian<\/em><\/a>:<\/p>\n<blockquote><p>Amazon pays all the taxes required in every country where we operate. Corporate tax is based on profits, not revenues, and our profits have remained low given our heavy investments and the fact that retail is a highly competitive, low margin business.<\/p>\n<p><span style=\"font-size: inherit; color: #000000;\">We\u2019ve invested well over \u20ac78bn in Europe since 2010, and much of that investment is in infrastructure that creates many thousands of new jobs, generates significant local tax revenue, and supports small European firms.<\/span><\/p><\/blockquote>\n<p><span class=\"u8D7mXtoVeUqKbFYN3jW9TZxl0IhSzrRCEGOLMpaf5k6vPQJnwg1A2dsyi4B\"><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Last year, we paid more corporation tax than Amazon.<\/p>\n<p>The system is rigged.<\/p>\n<p>Shop local if you can. Use independent businesses. Shop with those that hold the same ethics as you.<a href=\"https:\/\/t.co\/ope9BonVYl\">https:\/\/t.co\/ope9BonVYl<\/a><\/p>\n<p>&mdash; Roasting House coffee (@RoastingHouseUK) <a href=\"https:\/\/twitter.com\/RoastingHouseUK\/status\/1389465459028893696?ref_src=twsrc%5Etfw\">May 4, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/span><\/p>\n<p>Amazon&#8217;s defence is not incorrect; it makes relatively <a href=\"https:\/\/www.vox.com\/recode\/2019\/8\/21\/20826405\/amazons-profits-revenue-free-cash-flow-explained-charts\">small profits<\/a> on huge sales. However, as the company continues to expand its <a href=\"https:\/\/newrepublic.com\/article\/143376\/amazon-changing-whole-concept-monopoly\">monopoly<\/a> on every form of <a href=\"https:\/\/www.thenation.com\/article\/archive\/amazon-doesnt-just-want-to-dominate-the-market-it-wants-to-become-the-market\/\">commerce<\/a>, the real profits are yet to come.<\/p>\n<p>If it isn&#8217;t broken up, Amazon will continue to envelop the whole market.<\/p>\n<p>By <a rel=\"nofollow\" href=\"https:\/\/www.thecanary.co\/author\/jasminenorden\/\">Jasmine Norden<\/a><\/p>\n\n<p class=\"syndicated-attribution\">This post was originally published on <a href=\"https:\/\/www.thecanary.co\/trending\/2021\/05\/04\/amazon-paid-zero-corporation-tax-in-europe-last-year-as-income-soared\/\">The Canary<\/a>. <\/p>","protected":false},"excerpt":{"rendered":"<p>Amazon did not have to pay any corporation tax in Europe last year despite record sales income of \u20ac44bn. Amazon sells products to households \u2026 <\/p>\n<div class=\"read-more-wrap\"><a href=\"https:\/\/www.thecanary.co\/trending\/2021\/05\/04\/amazon-paid-zero-corporation-tax-in-europe-last-year-as-income-soared\/\" class=\"more-link\">Read more<\/a><\/div>\n<p>By <a rel=\"nofollow\" href=\"https:\/\/www.thecanary.co\/author\/jasminenorden\/\">Jasmine Norden<\/a><\/p>\n","protected":false},"author":1539,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3673,22180,365,1866,22181,21284,5594,1395],"tags":[],"_links":{"self":[{"href":"https:\/\/radiofree.asia\/wp-json\/wp\/v2\/posts\/148784"}],"collection":[{"href":"https:\/\/radiofree.asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/radiofree.asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/radiofree.asia\/wp-json\/wp\/v2\/users\/1539"}],"replies":[{"embeddable":true,"href":"https:\/\/radiofree.asia\/wp-json\/wp\/v2\/comments?post=148784"}],"version-history":[{"count":149,"href":"https:\/\/radiofree.asia\/wp-json\/wp\/v2\/posts\/148784\/revisions"}],"predecessor-version":[{"id":160435,"href":"https:\/\/radiofree.asia\/wp-json\/wp\/v2\/posts\/148784\/revisions\/160435"}],"wp:attachment":[{"href":"https:\/\/radiofree.asia\/wp-json\/wp\/v2\/media?parent=148784"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/radiofree.asia\/wp-json\/wp\/v2\/categories?post=148784"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/radiofree.asia\/wp-json\/wp\/v2\/tags?post=148784"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}