Seeking Alpha

The British parliament will call Amazon (AMZN) back to testify before the Public Affairs...

The British parliament will call Amazon (AMZN) back to testify before the Public Affairs Committee to explain how it justifies paying just $9M in income tax on some $23B in sales to British customers over the past six years, Reuters said Friday, citing lawmakers. The company claims it should only pay tax in Luxembourg as it operates a single business in Europe from there, rather than multiple independent subsidiaries across the region. Reuters suggests this is a mischaracterization.
From other sites
Comments (2)
  • ianwaring
    , contributor
    Comments (37) | Send Message
    Political grandstanding. Politicians make the tax rules. Google, Amazon follow them. Politicians lazy enough not to want to change their laws, so embark on a blame culture PR stunt instead.


    While the Google guy skirted around the business flows in a less than impressive fashion, the questions this committee should be asking is:


    1) which company subsidiary in Europe invoices customers?
    2) have the company breached any laws?


    The answer in both cases is a subsidiary elsewhere in the EU with a more competitive tax structure, and to the second question, none.


    The politicians need to do the work they are paid to do, which is to change laws, not to initiate silly PR campaigns.
    17 May 2013, 06:17 AM Reply Like
  • gensearch2
    , contributor
    Comments (1545) | Send Message
    While I agree with the sentiment of your post, I don't know enough of the detail on UK tax code or how Amazon has structured it's business Europe.


    If AMZN, as they claim, have a sole business in Luxembourg, then why did they pay the $9M in taxes at all?
    17 May 2013, 07:17 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs