AMAZON paid £3.1m in UK corporation tax last year and deferred payment of a further £2.2m, accounts revealed yesterday. Its bill for 2012 alone was £2.4m, on sales of $6.5bn (£4.3bn) in the country.
The US giant’s UK subsidiary, Amazon.co.uk Limited, posted annual turnover of £320m, leading to a £10.9m pre-tax profit and taxes of £2.44m. Common Market rules allow most of Amazon’s European sales to be run through its affiliate in Luxembourg, where it pays a much lower tax rate.
Politicians criticised the figures in an effort to stoke public anger ahead of Google appearing in front of the Public Accounts Committee this morning. The search engine has also been attacked for its UK tax payments and faced new accusations regarding where its sales are based earlier this month.
The UK is Amazon’s third largest market, and brought in sales of $6.5bn in 2012, according to the company’s annual report, a 21 per cent increase on 2011.
Amazon did not comment yesterday but has said that it obeys all UK tax laws.