Amazon pays £290m in UK tax as sales surge to £14bn News

Amazon pays £290m in UK tax as sales surge to £14bn

Author's avatar Clout News Desk

Time icon September 10, 2020

Online retail giant Amazon paid £293m in tax in the UK last year, while its sales surged 26% to £13.73bn.

The firm, which employs 33,000 people in the UK, said the taxes included business rates, corporation tax, stamp duty and other contributions.

Amazon and other tech firms have faced scrutiny over how much tax they pay in the UK, prompting the government to launch a digital sales tax in April.

“We Pay All Taxes Required In The UK And Every Country Where We Operate,” Amazon Said.

“We are investing heavily in creating jobs and infrastructure across the UK – more than £23bn since 2010,” the company said in a statement.

“We pay all taxes required in the UK and every country where we operate,” it said.

“Corporation tax is based on profits, not revenues, and our profits have remained low given retail is a highly-competitive, low margin business and we continue to invest heavily.”

In April, the UK launched a 2% tax on digital sales amid concerns that big tech firms we re-routing their profits through low tax jurisdictions.

Defending the plan, Chancellor Rishi Sunak said in June that the coronavirus crisis had made tech giants even “more powerful and more profitable”.

He added that firms like Google, Amazon and Facebook needed “to pay their fair share of tax”.

Amazon’s Expansion In The UK, Inc., is an American multinational technology company based in Seattle, Washington. Amazon focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. It is considered one of the Big Four technology companies, along with Google, Apple, and Facebook.

Amazon has been expanding in the UK this year, as more people shop online due to lockdown restrictions.

The company said last week it would create a further 7,000 UK jobs this year to meet growing demand, taking its total permanent workforce to 40,000 by the end of the year.

It is also recruiting 20,000 seasonal posts for the festive period.

Amazon is led by world’s richest man Jeff Bezos, whose personal fortune rose as high as $200bn (£155bn) in recent weeks as tech firms’ stock market valuations soared.

The company as a whole posted sales of $281bn for 2019 and net profits of $11.6bn.

Amazon And Reliance

Indian billionaire Mukesh Ambani’s Reliance Industries Ltd. is offering to sell a roughly $20 billion stake in its retail business to Inc., according to a person with knowledge of the matter.

Amazon has held discussions about investing in the conglomerate’s Reliance Retail Ventures Ltd. unit and has expressed interest in negotiating a potential transaction, the person said. Mumbai-based Reliance Industries is willing to sell as much as a 40% stake in the subsidiary to Amazon, the person said, asking not to be identified because the information is private.

A deal, if successful, would not only create a retail behemoth in India but will also turn Jeff Bezos and Asia’s richest man from rivals into allies in one of the fastest-growing consumer markets in the world. At $20 billion, the deal would be the biggest ever in India as well as for Amazon, according to data compiled by Bloomberg.

Author’s avatar

Clout News Desk

The Clout News Desk: Your trusted team dedicated to delivering the latest updates and insights from the world of entertainment. With a passion for uncovering captivating stories and a commitment to accuracy, we keep you informed and entertained. From breaking Hollywood news to trends in fashion and music, count on us to bring you the latest in entertainment. Join us as we explore the fascinating world of showbiz and beyond.