In 2014, Amazon's UK subsidiary paid £11.9m in corporate taxes on sales of £5.3 bn - a rate of less than 0.3%.
Amazon Warehouse. Photo Credit: Scott Lewis, Flickr.
These tax dodging activities aren't illegal but we agree with the MP's who attacked these companies calling their accounting shenanigans “immoral”.
Amazon, Google and Starbucks all stand accused of avoiding paying millions of pounds in tax by operating their UK businesses from countries with lower tax rates.
What sets Amazon apart though is that their whole business model appears to be built around using tax avoidance as a way to help make their prices among the cheapest online.
Amazon successfully transferred ownership of the main UK business to the Luxembourg-based company Amazon EU Sarl back in 2006. Luxembourg was number 3 on the Tax Justice Network's list of damaging secrecy jurisdictions in 2011. The Guardian estimated that the company may have avoided paying a tax bill of around £100 million between 2009 to 2012.
For this reason we've singled out Amazon to be the subject of a boycott.