Amazon pays just $2.2M in tax in UK despite surge in profits

Amazon is facing criticism after its British tax bill fell despite a big jump in sales and profits.

Records show Amazon U.K. Services Ltd. faced a 2017 tax bill of 4.6 million pounds ($6 million) but paid 1.7 million pounds ($2.2 million), deferring the rest.

Its pre-tax profits for the period were 72.4 million pounds, almost triple the previous year's 24.3 million pounds. Revenue was 1.99 billion pounds, up from 1.46 billion pounds.

The tax-payment decrease was partly due to shares payments to staff, which were counted as a cost and deducted from profits.

Amazon said Friday that it pays "all taxes required in the U.K. and every country where we operate."

Brick-and-mortar British retailers say they struggle to compete with online giants that use loopholes to lower their bill.


Explore further

Drugmaker GSK says first quarter revenue dropped 2 percent

© 2018 The Associated Press. All rights reserved.

Citation: Amazon pays just $2.2M in tax in UK despite surge in profits (2018, August 3) retrieved 25 May 2019 from https://phys.org/news/2018-08-amazon-22m-tax-uk-surge.html
This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no part may be reproduced without the written permission. The content is provided for information purposes only.
4 shares

Feedback to editors

User comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more