Boris Johnson to confront Amazon founder Jeff Bezos over company’s tax record

Big TechNews

Boris Johnson is set to confront Amazon founder Jeff Bezos in a face-to-face meeting over his company’s tax record while he is in the US.

Government officials have suggested that the concerns surrounding international corporate tax rates for Big Tech is high on the prime minister’s agenda while meeting Bezos.

“You can expect the PM to raise this important issue as you know we have been an advocate for an international solution to the tax challenges posed by digitalisation of the economy,” a spokesperson for the PM said to the Financial Times.

The meeting will come after the world’s leading economies signed an agreement to force multinational companies, like Amazon, to pay a global minimum of 15 per cent tax rate after the Paris Organisation for Economic Cooperation and Development (OECD).

READ MORE: Amazon continues UK grocery blitz with Co-op partnership

The agreement was signed by 130 countries and will ensure that the big corporations pay at least $100 billion more a year in taxes.

The money will be distributed amongst the countries where the companies do the bulk of the business and to address pressing issues.

“Obviously we recognise that as one of the largest companies in the world Amazon has a role in addressing issues of climate change and biodiversity,” the spokesperson added.

The ecommerce giant paid £18.3 million in corporation tax in the UK in 2020 after experiencing its highest sales in history, promising it to once again defend its controversial tax structure.

Amazon’s UK arm reported total group revenues of £20.63 billion last year, more than 50 per cent more than the £13.73 billion it made before the pandemic in 2019.

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3 Comments. Leave new

  • That won’t have any effect whatsoever. It is for our tax rules to change.

    Reply
  • Yet again, journalists suggest that it is revenues that should drive Corporation Tax, whereas it is taxable profits that do so. In a low-profit business (Amazon retailing) with high investment that leads to capital allowances (tax depreciation) that typically exceed accounting depreciation, it is not surprising that Amazon pays limited CT in the UK.

    Reply
  • Good. The likes of Amazon and other multinational corporations need to pay their tax like the rest of us.

    Reply

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