

Amazon UK boycott urged after retailer pays just £4.2m in tax - DanBC
http://www.theguardian.com/business/2014/may/09/margaret-hodge-urges-boycott-amazon-uk-tax-starbucks

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DanBC
[http://www.telegraph.co.uk/finance/newsbysector/retailandcon...](http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/10820864/New-
pressure-on-Amazon-over-9.7m-tax-bill.html)

Amazon needs to be careful here. While they appear to be obeying the law UK
population has the concept of "taking the piss" and Amazon is, clearly, taking
the piss here.

They must avoid any discussion of VAT, because that is a tax paid by customers
not Amazon.

Amazon makes use of UK resources and takes the benefit from the UK
infrastructure.

The UK coverage is concentrating on "fairness". We expect people to avoid
paying some tax. We don't care that companies do not pay the highest rate of
tax theoretically possible. But we do expect a company to understand what a
"fair rate" is and to pay something like that.

£5m paid on £4bn is not a fair rate, and is seen as taking the piss.

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arethuza
"£5m paid on £4bn is not a fair rate"

As the article points out, corporation tax is paid on profits, not on turnover
- it's entirely possible that despite huge turnover they aren't actually
making much money and therefore _aren 't_ due to pay much tax.

Of course, on the other hand they might be up to all kinds of "tax planning"
shenanigans but simply saying they are due to pay more tax based on their
turnover is making an overly simplistic argument.

~~~
merrua
Doesnt change Dan's point though. They will be seen as wrong doing.

