Amazon’s UK Arm Found Avoiding Corporate Taxes On £3.3 Billion In Sales Last Year

Posted on Apr 5 2012 - 4:53am by Editorial Staff

The Guardian reports that Amazon’s recent filings with the US Security and Exchange Commission reveal that the company’s UK arm generated £3.3 billion (about $5.25 billion) in sales last year, but that it has paid no corporate taxes on the profits for said sales. The company managed the trick by transferring ownership of the UK business to Amazon EU Sarl, an entity based in Luxembourg, back in 2006 resulting the physical UK operation itself is classified as a delivery and order-fulfillment business only, with all sales and transactions happening between consumers and the Luxembourg-based entity only. The company is being investigated by tax authorities in the UK. The Guardian is still trying to confirm about the investigation with HM Revenue and Customs but although it shows what’s cooking inside Amazon’s UK sales tax practices.

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Editorial Staff at I2Mag is a team of subject experts led by Karan Chopra.