Is paying no corporation tax fair or just good business?
Last week we reflected on Starbucks, this week it’s Amazon. They have a complete monopoly of the UK digital book market and they use their position to dominate.
All this comes at a cost, but unfortunately not to them. The biggest danger is that it will force small and medium sized publishers out of the market. The second point is that Amazon passes the 20% VAT onto the publishers while only paying 3% to the Luxembourg tax regime where it is registered.
Earlier this year the Guardian revealed that Amazon generated sales of more than £3.3bn via its UK website last year but paid no corporation tax on any of the profits from that income.
There was a time when it was hard to find examples of businesses avoiding tax in the UK, but now it seems to be a regular occurrence.
Surely we need to crack down on companies like Starbucks and Amazon who enjoy the benefits of operating in the UK without the financial contributions?
What are your thoughts?