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An article on The Guardian website dated 7 September 2021 and titled 'Amazon UK arm pays £3.8m more corporation tax despite £1.9bn sales rise' stated that corporation tax paid by Amazon UK Services in 2020 was 26% higher than the year before, while sales had soared by 64%.

It also quoted Paul Monaghan, head of the Fair Tax Foundation campaign group, who described the company’s figures as “more smoke and mirrors from Amazon, who are still refusing to disclose exactly how much total profit they make in the UK, and how much tax they pay on this”.

He continued: “Much of their UK income continues to be shunted to Luxembourg, where there is a ‘loss-making’ subsidiary that is not only not paying tax, but is generating enormous tax reliefs that can be used in the future to ensure that little or no tax continues to be paid. Amazon is growing its market domination across the globe on the back of income that is largely untaxed – allowing it to unfairly undercut local businesses that take a more responsible approach.”

It also stated: "Fresh questions were raised over Amazon’s tax planning this spring after its latest corporate filings in Luxembourg revealed that the company collected record sales income of €44bn (£38bn) in Europe last year but did not have to pay any corporation tax to the Grand Duchy.

Accounts for Amazon EU Sarl, through which it sells products to hundreds of millions of households in the UK and across Europe, show that despite collecting record income, the Luxembourg unit made a €1.2bn loss and therefore paid no tax."

The company lost half a mark under Tax Conduct for this secondary criticism.

Reference:

Amazon UK tax in 2020 (14 September 2021)