Sep 5th, 2018
Amazon & tax
By Becca McCarthy
Amazon has become the second company in history to be valued at a staggering *trillion* dollars. [1] But despite rocketing profits, they paid even less UK tax last year. [2] While high street shops are having to close down – and our public services struggle – online giants like Amazon are getting away with not paying their share. [3]
The Chancellor has said he is considering an “Amazon tax” to level the playing field – and make sure huge online companies pay up. [4] Newspapers are reporting that he could announce a decision in a matter of weeks. [5] The Chancellor’s making up his mind right now, so we need to act quickly.
You can bet highly paid lobbyists for big online companies will be busy behind the scenes, fighting against paying more tax. But in our thousands, we can drown them out. Together, we can pile the pressure on the Chancellor and show him that the public expect him to make giants like Amazon pay up.
The Chancellor is deciding his plans as we speak. Will you add your name to the petition to make companies like Amazon pay their fair share in tax? It takes 30 seconds:
We pay our fair share of tax, so why don’t Amazon? It’s not right that a trillion-dollar company can get away with paying less towards our public services than our local high street shops and businesses. [6] The pressure is mounting for a change in the rules. [7]
Let’s be honest, one of us alone couldn’t compete with the likes of Amazon, but hundreds of thousands of us are reading this email and together we’re powerful. We can show the Chancellor exactly where the public stand.
NOTES:
[1] The Guardian: Amazon becomes world’s second company to be valued at $1tn:
https://www.theguardian.com/technology/2018/sep/04/amazon-becomes-worlds-second-1tn-company
[2] BBC: Amazon tax bill falls despite profits leap:
https://www.bbc.co.uk/news/business-45053528
[3] The Independent: Death of the British high street? Store closures and job cuts paint grim picture for 2018:
https://www.independent.co.uk/news/business/analysis-and-features/uk-high-street-store-closures-retail-job-losses-2018-next-toys-r-us-new-look-maplin-a8270506.html
The Guardian: Public services face real-terms spending cuts of up to 40% in decade to 2020:
https://www.theguardian.com/uk-news/2017/nov/22/public-services-face-real-terms-spending-cuts-of-up-to-40-in-decade-to-2020
[4] Sky News: Chancellor Philip Hammond considering ‘Amazon tax’ for online retailers:
https://news.sky.com/story/amp/chancellor-philip-hammond-considering-amazon-tax-for-online-retailers-11468623
[5] The Times (paywall): Early budget to sidestep clash with Brexit talks:
https://www.thetimes.co.uk/article/early-budget-to-sidestep-clash-with-brexit-talks-qsm3smnxh
[6] In 2017 Amazon was asked to pay £4.5m in corporation tax. They made UK profits of £72m. That’s a tax rate of 6.25% on their profits. Most UK businesses will pay between 19-21% tax on their profits:
The Guardian: Amazon halved corporation tax bill despite UK profits tripling:
https://www.theguardian.com/technology/2018/aug/02/amazon-halved-uk-corporation-tax-bill-to-45m-last-year
GOV.UK: Rates and allowances: Corporation Tax:
https://www.gov.uk/government/publications/rates-and-allowances-corporation-tax/rates-and-allowances-corporation-tax
[7] Huffington Post: Archbishop Of Canterbury Urges Tax Hike To Combat ‘Unjust’ Economy:
https://www.huffingtonpost.co.uk/entry/archbishop-of-canterbury_uk_5b8f796ae4b0cf7b003ad587
[8] 38 Degrees: Make Amazon pay their fair share:
https://speakout.38degrees.org.uk/campaigns/4178
