Amazon UK pays just £4.2m in tax, boycott urged

Shoppers have been urged to boycott Amazon's British business after it paid just £4.2m in tax last year, despite selling goods worth £4.3bn – more than the UK sales of Argos, Dixons or the non-food arm of Marks & Spencer.

Margaret Hodge, chair of the public accounts committee, said shoppers should find alternatives to the Seattle-headquartered retailer, after consumer action persuaded coffee chain Starbucks to resume UK tax payments last year.

"It is an outrage and Amazon should pay their fair share of tax," said Hodge. "They are making money out of not paying taxes. I no longer use Amazon. We should shop elsewhere. What we demonstrated with Starbucks is the power of the consumer voice."

Amazon's most recent charge brings to just over £10m its contribution to the public purse through corporation tax in a decade. Over the last four years, Amazon has generated £23bn in British sales. It made a tax contribution of £3.2m the previous year.

Amazon is able to pay low tax because when shoppers in Europe buy from any of its local websites, the payment is taken by a subsidiary based in the low tax jurisdiction of Luxembourg. A British shopper's bank statement will show a payment to Amazon EU S.à.r.l. rather than Amazon.co.uk.

Amazon's British arm employs thousands of staff in warehousing, software design, accounting, human resources and other functions. For tax purposes, its role is simply to provide services to the European master company in Luxembourg.

Norman T wrote:Who's going to do that though?

You can get anything off Amazon, with a click of a key.

Ben_Reilly wrote:

Norman T wrote:Who's going to do that though?

You can get anything off Amazon, with a click of a key.

I hope a lot of people do just that. It's the best thing for Britain and for all countries if these huge corporations pay their fare share.

Norman T wrote:

Ben_Reilly wrote:

Norman T wrote:Who's going to do that though?

You can get anything off Amazon, with a click of a key.

I hope a lot of people do just that. It's the best thing for Britain and for all countries if these huge corporations pay their fare share.

People won't boycott Amazon, they should pay their fair share in tax though.

Lone Wolf wrote: 

JUST the latest in the rounds of big corporate tax dodgers...

However ~ just imagine how many companies you would really have to "boycott" under such a policy, just to be fair !

Miners, gas, banks, car/truck/bus manufacturers, every big oil company, big pharma' and 'agribusiness' concerns, News Corp., many of the bigger computer and phone manufactures, Google, PETA, most churches..

AND let's not forget the biggest mob of 'Tax Dodgers' in Britain ~ your very own Royal Family..    

Probably a few members here are already prepared, ready and willing to boycott them ?