The company is accused of avoiding tax in the UK by registering its sales from the country in Luxembourg, a known tax haven. Amazon EU, the company’s Luxembourg subsidiary is loss-making, not only meaning that it does not pay tax, but that it “is generating enormous tax reliefs that can be used in the future to ensure that little or no tax continues to be paid,” according to Paul Monaghan CEO of the Fair Tax Mark. "Amazon is growing its market domination across the globe on the back of income that is largely untaxed, allowing it to unfairly undercut local businesses that take a more responsible approach. Contrived financial arrangements lie at the heart of Amazon’s success.”
The online retailer - which has a market value of over $1 trillion - has also repeatedly been accused of opaque tax practices. It does not publish details of most of its UK profits or tax payments.
Margaret Hodge added, “The only solution is more transparency for corporate taxation. The government must act urgently to implement public country-by-country tax reporting so that we can see where companies are making their profits and if they are paying fair taxes."