Amazon has achieved a record turnover of 44 billion euros in Europe for the year 2020, but has paid no corporate tax in Luxembourg, where its European headquarters are located… Amazon Europe accounts even show a loss of 1.2 billion euros. How is it possible? The Guardian sought to find some answers.
The European giant has negotiated a tax credit of 56 million euros, which allows it to offset any tax if it were to generate profits, as was the case in 2020.
In addition, the company still has 2.7 billion euros in losses that it can carry forward into the future. Advantageous conditions which would be due to the excellent relations that Amazon maintained with Jean-Claude Juncker, the former president of the European Commission and Luxembourg political figure.
An unfair situation
A sleight of hand denounced by British Labor MP Margaret Hodge. For her, Luxembourg plays the role of tax haven to shelter the profits generated in the United Kingdom, France, Germany, Italy, the Netherlands, Poland, Spain and Sweden.
“These large digital companies all rely on our public services, our infrastructure and our educated and healthy workforce. But unlike small businesses and hard-working taxpayers, tech giants don’t pay the pot fairly for the common good. “, she said.
Amazon has not remained without an argument to defend itself against The Guardian.
“We pay all the required taxes in each country where we operate. Corporate tax is based on profits, not income, and our profits have remained low, given our heavy investments and the fact that retail is a highly competitive, low-margin business ”
, said a spokesperson.
Also to discover in video:
Joe Biden wants to make Big Tech pay more
In any case, this is not in line with the statements of US President Joe Biden who wants to prevent multinationals from continuing their tax optimization. He wants corporate tax to be paid based on where the profits are generated.
Amazon is not alone in creating complex structures to avoid taxes. America’s six big tech companies – Amazon, Facebook, Google, Netflix, Apple and Microsoft – have been accused of avoiding paying $ 100 billion in taxes globally over the past decade, according to a report by the Fair Tax Foundation.
The study accused Amazon of being the one that benefited the most from the system. And Joe Biden has branded the e-commerce giant on several occasions. Despite this, Jeff Bezos ultimately came out in favor of corporate tax reform and increase.
Source: The Guardian