The Arrow
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Post by The Arrow on May 25, 2015 1:26:20 GMT 7
Amazon to begin paying corporation tax on UK retail salesAmazon has become the first technology company to abandon controversial corporate structures that divert sales and profits away from UK in the face of a clampdown imposed by George Osborne.From the start of this month the online retailer has started booking its sales through the UK, meaning resulting profits will be taxed by HMRC. The group made $8.3bn (£5.3bn) of worldwide sales from British online shoppers but for 11 years all these internet transactions have been booked in Luxembourg. A spokesman said Amazon was “now recording retail sales made to customers in the UK through the UK branch. Previously, these sales were recorded in Luxembourg”. www.theguardian.com/technology/2015/may/23/amazon-to-begin-paying-corporation-tax-on-uk-retail-sales
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Post by Fletchsmile on May 25, 2015 10:27:43 GMT 7
Not often I find myself on the side of the government, but Amazon really were taking the p**s, when you read the following:
"Latest accounts for Amazon.co.uk Ltd show sales of just £449m for 2013 and a tax charge of £4.2m. Elsewhere in its corporate filings, however, Amazon attributed $7.29bn (£4.71bn) of worldwide net sales to the UK for the same year."
Good to see the government raising tax money were it should be coming from, just wish we could stop them p'ing it away once they receive it. Also nice to see some of these dodgy characters eating humble pie:
"A year ago, North [Christopher North, ex-CEO] claimed in an interview with the Guardian that Amazon’s European corporate structure was not determined by tax avoidance strategies, insisting it would be impossible to route sales to UK customers through a British company paying tax to HMRC. “We just couldn’t do that,” he said. “And a single European business is going to need a single European headquarters.” "
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The Arrow
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Post by The Arrow on May 25, 2015 10:41:20 GMT 7
I wonder if it's not just the new diverted profits tax of 25%, but also the possibility the UK may be coming out of the EU soon.
Let's hope Osborne goes after the rest, Starbucks, Vodafone, hedge funds . . .
Running round after taxi drivers and part-time painter and decorators for literally a few quid must have run its course, the cost of collection outweighing the take.
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Post by Fletchsmile on May 26, 2015 21:24:21 GMT 7
Their Finance people at head office have probably looked at a possible Brexit. It's an issue to consider. If Brexit did go ahead, that might push UK to compete on tax to attract businesses and lower their tax rates. Tax really does push people away from UK. One of the biggest negative factors preventing us as expats moving back is letting the government get their grubby hands on your money. SO I'm all in favour of collecting it off people/companies abusing the system and going after those other companies, so they can then reduce for (almost) normal people. If only they'd go after the politicians  |
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Post by Fletchsmile on May 30, 2015 12:56:35 GMT 7
Seems like this is an EU wide change for them, and Amazon is doing the same thing in Germany.
Came across this in another couple of accounting/tax places. Some of the technical suggested answers behind it include:
- The "Google tax" or "diverted profits tax" (DPT - as it's known) is 25% whereas UK tax only 20%
- Osborne aand other MPs obviously claiming credit
- Changes going on in G20 OECD reporting by business
- European Commission challenges State Aid it gives countries. Where profits are made is a factor
- Amazon isn't highly profitable for what it does, so simplifying doesn't cost it much
All said and done. I don't mind as long as they're not after the little people, and aiming to make life fairer - a rarity among politicians these days
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smokie36
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Post by smokie36 on May 31, 2015 18:39:36 GMT 7
I bought my kindle in Jersey and paid considerably less for it.
All their stuff used to be cheaper there hehe...
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