News - France seeks over $250 million in back taxes from Amazon

[HEXUS]

Amazon says “We disagree... and intend to vigorously contest it”.

Read more.

[scaryjim]

I think you need to clarify your language between tax evasion and tax avoidance. Tax evasion is the use of illegal methods to reduce ones tax burden. Tax avoidance is the use of legal methods to reduce your tax burden by adhering to the letter of the law, regardless of the spirit or intention of the law. Referring to Amazon et al. as "evading" tax is a very different matter - legally - to referring to them as "avoiding" tax...

[Brewster0101]

Not good news for us consumers or the people that are employed by Amazon. Amazon might not pay much tax but as a result the consumer enjoys some good low prices on pretty much everything they sell plus free postage. As a result of these low prices they have the need for big warehouse and large staffing needs.

I work for a company that exploits tax loop holes. If these holes were closed my job would go to some eastern European country with lower corp tax....

Many people employed in this country are employed by companies they use tax loop holes. If they were forced to pay full whack corporation tax they would simply move.

[Saracen]

I think you need to clarify your language between tax evasion and tax avoidance. Tax evasion is the use of illegal methods to reduce ones tax burden. Tax avoidance is the use of legal methods to reduce your tax burden by adhering to the letter of the law, regardless of the spirit or intention of the law. Referring to Amazon et al. as "evading" tax is a very different matter - legally - to referring to them as "avoiding" tax...

Quite correct.

It's a very easy mistake to make, but the difference between "avoid" and "evade" is critical. One is legal (though arguably, as with those examples, immoral) and the other is criminal.

[Saracen]

....

Many people employed in this country are employed by companies they use tax loop holes. If they were forced to pay full whack corporation tax they would simply move.

Some companies no doubt would, or might. Some couldn't. If you want to sell coffee in high street shops to British consumers, you pretty much have to have high street shops in Britain, because Joe Public won't traipse off to Luxembourg or Switzerland every time he/she wants a cup of coffee.

[Kinso]

Might as well add eBay and PayPal to that list too.

[Willzzz]

Not good news for us consumers or the people that are employed by Amazon. Amazon might not pay much tax but as a result the consumer enjoys some good low prices on pretty much everything they sell plus free postage. As a result of these low prices they have the need for big warehouse and large staffing needs.

I work for a company that exploits tax loop holes. If these holes were closed my job would go to some eastern European country with lower corp tax....

Many people employed in this country are employed by companies they use tax loop holes. If they were forced to pay full whack corporation tax they would simply move.

Just because they move their headquarters doesn't necessarily mean that they move the jobs as well.

Although I do see your point, as of course does HMRC.

[the54thvoid]

Might as well add eBay and PayPal to that list too.

It'd be easier to list who isn't avoiding tax. Well, I'll be the first.

[wombat]

The rules are set by the government so up to them to sort it. I can't say how they can shout too loudly on the tax avoidance issue, if I remember correctly Ian Cameron dud very nicely on tge ax avoidance front and David inherited a tidy 300 grand from him. With the collective wealth of the front benches it might prove interesting to publish tax details there. Oddly enough Mr Cameron etc aren't keen on extending it to include family wealth.

[Lucio]

Gotta remember to bookmark these threads for the next time people complain about prices over here in "rip off Britain", cos it's sure as hell not the corporations or shareholders who will end up paying these corporate tax bills....

[3dcandy]

Whilst I can see your points it does seem rather churlish to enjoy low prices when other companies are paying their taxes more fairly in the eyes of governments...

[Noli]

Whilst I can see your points it does seem rather churlish to enjoy low prices when other companies are paying their taxes more fairly in the eyes of governments...

Quite right. Brewster0101's argument is, with respect, rather daft. Arguing that we should kowtow to the giants in case we risk irritating them is actually a slap in the face to all the smaller and medium sized companies struggling to compete as, not only do they not have Amazon's economies of scale, but they lack the same abilities to avoid taxes so aggressively. Such arguments would actually stifle competition, not promote it. You really think Amazon would abandon the UK because of a higher effective tax rate? Yes prices might rise a little for me as a consumer but the alternative is a far more worrying - and costly.

[mark22]

Oooh make them big nasty companies, that employ people to do real work, pay to exist. Cos vat,income tax etc is nothing to the rabble. If only people realised their real boss, no debt no tax!!

[HalloweenJack]

Time for cameroon to leave the EU

[csgohan4]

If it's not illegal then how can they be challenged? It's just like using umbrella companies and forming your own limited companies to avoid paying full taxes.

[Caveman]

I actually work for Amazon and this little bit of news is going to be interesting when I bring it up in our quarterly meetings. Lets see what they have to say with regards to 'Not able to give its employees a payrise due to low profit margins'

Thanks Hexus.