The UK arm of Amazon paid less than £2.4 million in tax on its income last year despite reporting sales of £4.2 billion in this country, its accounts reveal today.
The figures also show that the online giant, which sells a quarter of books and 90 per cent of all ebooks in the UK, also received £2.5 million in government grants.
Amazon UK’s corporate income tax bill was so low because its sales to British households are routed through an offshore affiliate in Luxembourg.
An online petition set up by local booksellers which demands the Government “stop Amazon’s tax dodge now” has attracted almost than 170,000 signatures.
Tomorrow Google executive will be questioned by MPs on the public accounts committee. It has been the focus of anger for the way it pays almost no income tax.
At a hearing in November, Google’s Northern Europe boss Matt Brittin said that UK sales were conducted from Ireland and that no sales took place from Britain.
