Despite its profits, Amazon UK avoids a share of taxation

Amazon UK Services, a British subsidiary of Amazon which notably oversees its network of warehouses, relied on the “super deduction” put in place in 2021 by the Chancellor of the Exchequer – equivalent to the Minister of Finance – Rishi Sunak.

This “super exemption” allows companies to obtain tax reductions based on their investments, particularly in terms of infrastructure, but also job creation. Quite logically, Amazon did not wait long to jump at the chance, and opened four new logistics warehouses in a few months, notably in Redditch, not far from Birmingham, but also in Dartford, near London, and Gateshead, in the suburbs of Newcastle.

According to a proven, but still effective strategy, warehouse openings are accompanied by communication centered on job creation by the e-commerce giant, in order to lure the customer and political leaders.

As such, the workforce of the multinational in the United Kingdom is growing at a surprising speed: the figure of 55,000 employees was mentioned for the end of 2021, but it has now reached 75,000 individuals, according to a new promise of creations of 4000 positions.

Reaching £6.1 billion in 2021, Amazon UK Services’ turnover has jumped – it was £4.85 billion the previous year. The accounting difference can also be seen in the corporate tax department: this amounted to £18.3 million in 2020 and simply disappeared in 2021, thanks to the “super deduction” mechanism.

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The government uses the tax system to actively encourage businesses to invest in infrastructure and job creation. We have invested over £11.4 billion in the UK, opened four new warehouses and created over 25,000 jobs “, assures, right in his boots, Amazon.

Amazon did not disclose the tax bill for all of its UK operations, but said its UK subsidiary paid £648 million in ” direct taxes for the year 2021, compared to 492 million in 2020.

via The Guardian, Mirror

Photography: illustration, Johannes Winger-Lang, CC BY-NC-ND 2.0

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