Amazon’s decision to change its tax-efficient European business structure could raise its tax bill by as much as $100 million a year but authorities will have to fight for additional money and any payments will be hidden from public view.
Amazon has become one of the highest profile targets of an international drive against tax avoidance that has gained pace in Europe in recent years.
The company has historically paid little tax in Europe because its clients did business online with Luxembourg-based companies, the biggest of which is Amazon EU Sarl. Consequently, authorities across the continent could not use its sales revenues as a basis for assessing tax.
That’s why Amazon’s main German operating unit paid just 11.9 million euros in tax in 2014, despite the group recording $11.9 billion in sales to German customers last year.
But Amazon said at the weekend that from May 1, it had started to book sales in the UK, Germany, Italy and Spain via local branches of Amazon EU Sarl.
“Amazon will have to pay more tax … (but) I think the amount of additional tax paid will be very small,” said Chas Roy-Chowdhury, Head of Taxation at accounting group ACCA.
Full content: The Economic Times
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
T-Mobile’s Acquisition of Ka’ena Corporation Receives FCC Approval
Apr 26, 2024 by
CPI
UK Regulator Announces Two New Senior Executive Appointments
Apr 26, 2024 by
CPI
Paramount Global and Skydance Media Near Merger Deal, Eyeing CEO Change
Apr 26, 2024 by
CPI
BHP Unveils £31bn Mining Megamerger Proposal with Anglo American
Apr 25, 2024 by
nhoch@pymnts.com
ByteDance Prefers Shutdown Over Sale of TikTok Amid US Ban Threats
Apr 25, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI