Title: Amazon EU Sarl paid too little tax, EU
competition regulator says
Summary:
Amazon’s main European trading
company that accounts for a fifth of the online retailers’ worldwide sales has
been paying too little tax for years. This article goes on to explain Amazon’s
troubled past with tax and how they have been struggling to sort it out.
Facts/Phrases:
Ø Amazon
EU Sarl, the group’s Luxembourg trading hub sales of €13.6bn
(£10.3bn) in 2013, had been paying inflated royalty fees to another Amazon
entity.
Ø AEHT
made profits of €1.93bn in the seven years from 2007 to 2013 after
receiving €3.31bn from other Amazon companies, according to a Guardian analysis
of its accounts. At the end of that period Amazon EU Sarl still owed AEHT
€2.1bn.
Ø Among
the most controversial aspects of Amazon’s 2003 tax ruling, the commission’s
decision paper suggested was an effective cap on the amount that could be
earned by Amazon EU Sarl, being 0.55% of turnover. The commission claimed this
provided an “effective override”, replacing a more conventional basis on which
to calculate the proper value of royalties.
Opinion:
In my opinion, this article is
about how new and digital media has become so advance it’s assisted in tax evasion
in some sense.
No comments:
Post a Comment