Amazon called back over UK tax dodges

The British parliament has called back internet retailer Amazon over alleged tax avoidance.

The British parliament has called back internet retailer Amazon.com to shed light on how it justifies its unusually small corporate income tax bill.

Amazonâ„¢s upcoming grilling over allegations of tax avoidance follows internet search giant Google, which recently attended another round of questioning by the UK parliamentâ„¢s Public Affairs Committee (PAC) over its tax affairs.

During the last six years, Amazon has paid around $9 million in income tax on over $23 billion of sales to British clients. It claims that it operates a single European business out of Luxembourg, instead of a multinational structure of independent subsidiaries in different countries, and should therefore pay tax in Luxembourg.

But exposed evidence by Reuters news agency included Amazonâ„¢s own statements, job advertisements, statements from three suppliers and five former employees, as well as the profiles of over 140 staff on networking website LinkedIn.

This suggests the companyâ„¢s UK unit has a high degree of self-sufficiency, with local managers deciding on many aspects of its business.

Moreover, Bryan Roberts, Retail Insights Director for consultants Kantar Retail, said apart from the fact that buyers make deals over the internet, Amazonâ„¢s UK unit Amazon.co.uk Ltd, which is based in an office block in Slough, near London, was in effect a UK retailer.

Back in March, over 100,000 Britons signed a petition, calling on Amazon to Å“pay its fare share of tax” in the country.

BGH/MOL/HE

This article originally appeared on : Press TV