Amazon, an American-based, multinational technology company, commonly known for its online retail services, has been trading in the UK for 21 years.
This week, they published a fraction of their tax details for the past year. Amazon paid the UK only £220 million in taxes last year despite its total revenues from doing business in the country amounting to £10.9 billion.
The company also revealed they paid £63.4 million in business rates, about £40 million less than a high street fashion chain retailer, which made half the sales of Amazon.
Their small tax bills are a result of an employee share scheme, which is structured in a way that reduces Amazon’s tax liability when the share prices rise.
The Government has plans to help high street shops to compete on equal terms by placing a 2% tax on sales next year for online retailers.
If you have any queries regarding the law around taxation, then contact us at Audley Chaucer Solicitors.
Written by Syeda Anjum
