Tuesday, May 04, 2021

Amazon's Bonanzas

 Amazon's Luxembourg unit which handles sales for the UK, France, Germany, Italy, the Netherlands, Poland, Spain and Sweden employs just 5,262 staff. Its latest corporate filings in Luxembourg revealed that the company collected record sales income of €44bn (£38bn) in Europe.  Amazon did not have to pay any corporation tax. In fact the unit was granted €56m in tax credits it can use to offset any future tax bills should it turn a profit. The company has €2.7bn worth of carried forward losses stored up, which can be used against any tax payable on future profits.

Paul Monaghan, the chief executive of the Fair Tax Foundation, said: “The bulk of Amazon’s UK income is booked offshore, in the enormously loss-making Luxembourg subsidiary, which means that not only are they not making a meaningful tax contribution now, but are unlikely to do so for years to come given the enormous carried forward losses they have now built up there.”

Amazon had sales income of €44bn in Europe in 2020 but paid no corporation tax | Amazon | The Guardian

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