Amazon.co.uk pay ZERO tax in the UK. Why are people more annoyed about the bloke down the road maybe getting a benefit that he shouldn't than that. I don't understand.

[Pagwatch]

Seriously. This weasel on radio 5 this morning just kept saying 'we pay all relevant taxes for the region' but wouldn't answer when Andrew Verity pressed 'yes, but that means tat you pay no tax in the ZuK because you have chosen to place Amazon.co.uk registered head office in Luxemborg.

If everyone phoned their mp about corporate tax evasion rather than mrs smiggins who is getting DLA when she looks fine we could pay off the deficit.

Hooray!

No. Seriously. Why don't we care about this?

you shouldn't be a '.co.uk' if you're not registered here! Other countries impose restrictions like that, seems wrong.

Bastardos. Hate this shit.

And hate the fact that people bleat on about people getting benefits.

Even scamming benefits - it's such small fry compared to these idiots.

Erm.... being able to buy a product cheaper through Amazon is a significant benefit to me.

I don't care if Amazon don't pay UK tax. I could just as easily buy from a US company domiciled in the US and have it flown here (as I actually did a few weeks ago) for almost the same price. That US domiciled company will I bought from will not pay UK tax either although it will hand over the VAT to HMRC.

Do they, BleatingRose ? How on earth do they police it?

Yeah, Boots and Walkers Crisps have done similar (amongst others.)

Why the fucking fuck doesn't the UK tax profits earned in the UK? It's insane.

Oh, and they shouldn't be allowed to offset debts to forrin banks against UK earnings, either. That just makes more money bleed out of Britain into some other country.

Remember during the middle east riots, the first sign to the outside world was that all internet communication to Egypt (iirc) were shut down - internet blackout.

So presumably there is some way to police it.

I'm sorry my last post was a bit grumpy. I had just come in from the gym and my arse back hurt

I am sure there are points for and against. I am just exasperated that the question of whether a bloke should be using a car with a blue badge or whether a woman qualifies for dal seems to crop up on here all the time. But rarely does wholesale tax avoidance gets mentioned.
I know which one irritates me more. I just wonder why we begrudge our beighbour but get [shrug] about the bigger fish to fry.
Perhaps local stuff just seems more within our control/remit.

It just seems really odd. Fucking bono.

Dal should be DLA of course.

I dont think taxing an entity just becuase it uses a .co.uk web address would work - they will just use a different web address.

Non-UK headquartered companies are not exempt from UK corporation tax, by the way. If they have a UK branch (presence), the profits earned by the UK branch are subject to UK tax. Hence, Amazon must either be conducting business in an way that they dont have a UK branch (so that they transact with UK customers from overseas) or so that the profits attributable to the branch are low (eg becuase they have high expesnes in the UK).

If Amazon does not have a UK branch (employees on the ground in the UK whose activities give rise to the profits), then why should the UK have taxing rights? if the suggestion is that there should be UK taxing rights just becuase customers are in the UK, that is contrary to general principles of international taxation (it is not a loophole but widely applied principles). It would not be open to the UK to chose to tax companies with no presence (even a branch) here becuase they have entered into international agreements with lots of other countries which make clear that they are not entitled to tax in these circumstances. Most countries (apart from havens) enter into these types of agreements which are designed to prevent more than one country taxing the same profits. Assuming that Amazon are genuinely set up so that it is their overseas activities that give rise to their profits, I dont see that this could be said to be tax avoidance when it is entirely consistent with international taxation pricniples. The e-commerce angle does murky things a bit and there have certainly been reviews over the years (involving the OECD etc) on whether there should be changes to these principles to reflect the way business is now done, but so far the current allocation of taxing rights has been preserved.
You cant say that it is not fair when the UK in turn quite happily taxes UK companies on their profits from French customers.

I don't think people do begrudge their neighbours while ignoring bigger issues. It's just that people will talk about, and be concerned about things that they can actually see happening in their every day lives.

Most of us don't know a huge amount about corporate tax loopholes, so with less knowledge on OT there is less to discuss. That doesn't mean people care about one subject more or less than the other though.

However, I like Amazon because they seel me stuff cheaper than their competitors. I don't really care how they do that as long as its legal, and it is legal, so I'm happy to let them get on with running their business the most profitable way they know how.

Jenai- I think it was germany (because we wanted a domain ending in co.de .... i.e. 'code') and you have to be a german registered company to have that domain, very definitely (we aren't).
This was through domain name registration service (poss 123, not sure now)

This is business, if you run a business you make the most efficient choices for it.

Amazon related business will be creating employment, collecting VAT which at 20% is considerable.

Go on Amazon and order a book about Economics

WineOhWhy, I have to fill in a US tax form if I sell anything to residents there. I've assumed I will be taxed on earnings in the US - is that not the case?

I was just mulling over a new Buy British campaign - but we can't, coz we don't make anything any more :(

WineOhWhy - Not sure the UK has that many companies left! Our utility companies are based in Germany, France, and .. Malaysia (!??). Our chocolate is made by an american plastic cheese company.
Even our state services are being hacked off to god knows who.

The UK seem to be the biggest mug on the block. thanks Cameron!

Amazon related business will be creating employment - not much of it, as later this year a further 2 million workers will be made available, funded entirely by taxpayers. Not only that, but companies get around £5k of public funds as a bonus for taking on free staff.

Sure, it's cost-effective for the corporations. They save on employment costs and get extra income We're pretty much paying them to syphon funds out of the UK at a rate of knots already.

Go on Amazon and order a book about Economics

Maybe you should read one, and see what happens to a stifled economy.

I don't care because I don't blame anyone for trying to avoid tax. The government do a crap job of spending money so I sure don't want them to have more. If amazon paid more tax, I would pay more for my goods which I don't want to to. If less was paid out in benefits the govt could lower taxes, I could pay less tax and I would like that. THat is why I care about one and not the other!

God, Londonone, you really see things from a narrow viewpoint, don't you?

In fact, do we even still make mugs? Royal doulton etc are they still going?

It's legal. They also employ shedloads of people who pay income tax. Without Amazon, those people might be unemployed.

Thank you Amazon, don't go elsewhere and make us pay more for goods.

I agree with LondonOne. Wholeheartedly.

It's legal to cheat on your wife as well, doesn't mean it's ok.

yellowraincoat - I think people can spend their money better than governments can a lot of the time I don't think that is a particularly narrow view. The OP posed a narrow question re a specific comparison and I answered in kind

Pag "I am sure there are points for and against. I am just exasperated that the question of whether a bloke should be using a car with a blue badge or whether a woman qualifies for dal seems to crop up on here all the time. But rarely does wholesale tax avoidance gets mentioned.
I know which one irritates me more. I just wonder why we begrudge our beighbour but get [shrug] about the bigger fish to fry.
Perhaps local stuff just seems more within our control/remit."

I heard that interview this morning, too, Pag and was

Maybe, as other posters have suggested upthread, what is within our control/remit is to think very carefully about how much we shop on Amazon. I admit to having a vested interest as I work for a retailer and am watching the high street having its lifeblood sucked out by companies like Amazon -whilst we are still paying exhorbitant rents, rates and taxes, and are having to cut employees' hours because you can sit on your arse it's cheaper online.