TaxWatch finds astute scheme minimizes Big Tech's UK tax bill by over $2B

The UK misses out on an estimated £2 billion ($2.4 billion) in revenue because the way seven of the world's largest tech businesses successfully minimize their tax bills. Research by campaign group TaxWatch shows the group, including Microsoft, Google parent company Alphabet, Facebook owner Meta and Apple collectively …

[elsergiovolador]

Laziness

It's more about laziness. HMRC can charge Diverted Profit Tax, but that requires doing work, audits etc.

It's much easier to go after small business, that can't defend itself than after big corporations.

HMRC doesn't want to step outside of their comfort zone and we all lose.

[Chris Evans]

Amazon misleading!

"Amazon ranks in the top 15 largest UK taxpayers for taxes borne and collected" I deduce this is referring to their collecting VAT on their sales and on all the thousands of sellers selling on Amazon. I call that extremely misleading. I do wonder why anyone buys from Amazon, I don't have to try hard to find what I want cheaper than on Amazon.

[Andy The Hat]

Re: Amazon misleading!

I don't care why people use Amazon but I find their statements "misleading" too.

They are that rarest of companies - one who's boss and senior executives are so good, valuable and making the company so much money that they can be paid millions per year, yet the company still makes a loss ... apparently.

Doesn't that ability to (legally) make a "we made a loss" statement with a straight face demonstrate exactly where the problem lies?

[ChoHag]

Re: Amazon misleading!

Aah! I see you have the machine that goes 'ping'. This is my favorite. You see, we lease this back from the company we sold it to, and that way, it comes under the monthly current budget and not the capital account.

[RPF]

Re: Amazon misleading!

VERY misleading. Zero corporation tax in the UK 2 years running....on a turn-over of billions.

[DevOpsTimothyC]

19% Corporate tax

Hasn't the corporate tax rate (for all but the smallest) gone up to 25%? Why isn't the story indicating what should be paid if those figures were for this year. After all HMRC keeps using projected figures for justification to change rules

[elsergiovolador]

Re: 19% Corporate tax

To add salt to injury, for small business the marginal Corporation Tax rate is even higher - 26.5% for profits between £50,000 and £250,000.

[Roland6]

Re: 19% Corporate tax

The 19% represents the effective tax rate a typical UK HQ’d company would pay on its gross profits before adjustment for UK tax. To use the actual tax rate would give a misleadingly higher tax take figure that didn’t take into account legal adjustments that reduce taxable profits.

[TimMaher]

Amazon “indirect taxes”

May I assume that they are using the old trope of “we pay through employment. We send in all of our employees income tax and NI money” as well as “ the VAT paid by our consumers”.

[Dimmer]

Re: Amazon “indirect taxes”

If you look at it from what I pay my guys employer’s share of taxes I pay more taxes than I get paid.

I put extra effort into the corp not making money. At the end of the year I look at the supposed profit and split it amongst the guys based on the hours they put in as a bonus check. Without the work getting done, there is no income. Few owners put the money to where it should go.

Sounds like a socialist? Nope, I am a conservative and believe in the individual. As a conservative I control waste as much as possible and when you underpay an individual, it is a waste of their time.

[Roland6]

Re: Amazon “indirect taxes”

>” I look at the supposed profit and split it amongst the guys based on the hours they put in as a bonus check.”

Suspect this equitable but not not equal bonus award means it gets taxed…

[katrinab]

Re: Amazon “indirect taxes”

The VAT is the indirect tax, and the PAYE is the direct tax.