Last updated: November 2015
Amazon and Tax
Has Amazon finally started paying a fairer rate of tax? The latest from the Boycott Amazon campaign.
In 2014, Amazon's UK subsidiary paid £11.9m in corporate taxes on sales of £5.3bn - a rate of less than 0.3%. The Sunday Mirror reported earlier this year that Amazon was one of six firms that paid just 0.3% of tax in the UK.
However, in May 2015, Amazon announced that they will begin to pay a fairer rate of tax.
In a statement the company said it started to book retail sales through its UK branch from May 1st 2015, ending the practice which saw them route sales directly through a Luxembourg subsidiary.
This is a huge breakthrough in the fight for tax justice and huge u-turn for a company that said just a year ago that it would be impossible to route sales to UK customers through a British company paying tax to HMRC.
So, has Amazon transferred profits to local branches?
In short, Amazon still, as yet, isn't paying much tax in the UK as well as a number of other countries. It has been suggested that this is because Amazon might be shifting around its profits to hide them.
If Amazon wants to persuade people that it is not doing anything dodgy, there is a solution, which is to institute proper country-by-country reporting, as advocated by the Fair Tax Mark, the OECD and others. Then we will all be able to get a clear picture on the state of their tax affairs.
In the meantime, we have to assume that Amazon is still shirking its tax responsibilities and therefore, our boycott against them continues.
Read our feature on 'Amazon and Tax' for more information.