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Amazon's role in the decline of HMV
Last Post 17/12/2013 14:49:15 by kahooma. 2 Replies.
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martynj85
New Member
New Member
Posts:1


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16/01/2013 20:58:55
    Is it just me that sees a strong link between Amazon's tax avoidance and the decline of HMV?

    I must admit HMV was pretty slow to establish itself as an internet retailer. As some analysts have said, HMV had a strong brand name and it could have rivalled Amazon online. But how could it ever compete in a marketplace dominated by a monster which pays so little tax?

    Despite HMV's high street presence, many consumers have been heading for the internet where they search for products based on cheapest price alone. And in that market, Amazon has been able to undercut HMV's pricing because they don't pay a fair rate of tax.

    So not only is Amazon guilty of not paying its fair share of tax, which funds our schools and hospitals, but they are responsible for the loss of 4,500 jobs which will also result in a decline in tax revenues.

    If HMV's 4500 staff members earn an average of £20,000 and pay 20% tax, that's a potential loss of £18m PAYE tax per annum.
    heatheradmin
    Senior Member
    Senior Member
    Posts:173


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    17/04/2013 17:09:58
    Yes it is this point which we make in the current issue of the magazine. Amazon have had a massive impact on the revenue small bookshops make and therefore mean that the UK government receives less income from these companies. By not paying tax, Amazon has led to the loss of jobs, loss of revenue and pays its staff in its warehouses minimum wage which means many people have to be supplemented by tax credits.

    Hear Margaret Hodge pointing this out to Starbucks (see 5.30mins) she highlights the point a little more eloquently.

    http://www.youtube.com/watch?v=db4TlUY_1gI

    Kind regards,

    Heather



    kahooma
    New Member
    New Member
    Posts:3


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    17/12/2013 14:49:15
    I would like to point out that being accused of being immoral is not the issue. If the law is allowing these businesses to do this then it is the law's fault. The UK Government should do their job and change the laws so that it becomes illegal to trade in this way. Then these companies would obey the law as they currently are and start to pay what they own.

    This arguement of morality is flawed as it only scapegoats those businesses that are in the public spotlight. Put Amazon and Google and Starbucks out of business and it could be another business who realises they can do this immoral practice.

    However, put laws in place to stop this from happening and any company who fails to pay their tax gets a hefty tax bill as well as extra fines for not paying like the rest of us.
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