The Government is today talking with Amazon and Google to find out how they’ve managed to pay such a small proportion of tax.
According to Reuters, Google reported $4 billion in sales in the UK last year – with an astonishing profit margin of 33 per cent – but paid just £3.4 million in tax.
Amazon, meanwhile, managed to pay less than half the average corporate tax rate by reporting its European sales through a Luxembourg-based unit and its UK unit paid less than £1 million in income tax last year despite racking up sales of $5 to $7 billion.
“It is hard for the ordinary person to believe it's fair,” said Margaret Hodge, MP, chairman of the Public Accounts Committee, which is investigating the activities. “It makes people incredibly angry in the current fiscal climate.”
Want to receive up-to-the-minute tech news straight to your inbox? Then click here to sign up for the completely free PCR Daily Digest and Newsflash email services. You can also follow PCR on Twitter and Facebook.