Amazon defends tax practices after UK bill is halved in 2016
US ecommerce giant Amazon saw its corporate tax bill in the UK fall more than 50% in 2016 in comparison with 2015.
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The Seattle-based retail company has seen its market capitalisation in the US soar to over $500bn in recent months, with founder Jeff Bezos becoming one of the richest men in the world in the process.
Amazon UK Services, which employs the vast majority of the company’s UK staff, was billed £7.4m last year. In 2015 the entity paid £15.8m in corporation tax.
The company saw profits slumping in its most recent quarterly results as it spends big on further attempts to diversify its business operations, with profits in 2016 falling to £24m last year.
Some MPs spoke out in criticism of the reduction in taxes paid by Amazon, with Labour’s Margaret Hodge blasting it as ‘outrageous’.
Amazon maintained it had complied with all UK and wider tax laws through its operations in the country.
“We pay all taxes required in the UK and every country where we operate,” a spokesman for Amazon said.
“Corporation tax is based on profits, not revenues, and our profits have remained low given retail is a highly competitive, low margin business and our continued heavy investment.”