Investment in Infrastructure and Robotics, but Still No Corporate Responsibility?

  • Amazon UK tax bill rises to £781m
  • No corporation tax paid for second year in a row by main UK division
  • Tax credit of £7.7m received through the government’s ‘Super-Deduction Scheme’
  • Investment of £1.6bn in infrastructure and robotic equipment
  • Overall tax figure includes business rates, employer’s national insurance contributions, and corporation tax
  • Tax bill up from £648m a year before
  • Fair Tax Foundation criticizes Amazon’s lack of responsibility

Amazon has reportedly paid £781m of tax in the UK last year despite its main UK division having paid no corporation tax for the second year in a row, according to The Guardian. Amazon UK Services, which accounts for over half of the retail giant’s UK staff, received a tax credit of £7.7m as part of the government’s ‘Super-Deduction Scheme’. It comes as Amazon was said to have invested £1.6bn in infrastructure including new warehouse and robotic equipment. The overall tax figure is said to include business rates, employer’s national insurance contributions, and corporation tax and is up from £648m a year before. Speaking to The Guardian, Paul Monaghan, the chief executive of the Fair Tax Foundation, said: “Over the last decade, Amazon has grown 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. ‘We now have a situation where Amazon UK Services is not only not paying tax, but is being handed tax credits for investment that almost certainly would have happened anyway…’ An Amazon spokesperson said: ‘Amazon UK Services is only a small part of our business, and when you look across all our UK companies we paid corporation tax last year. The reduction in tax for Amazon UK Services specifically is a result of our significant capital investments in the UK.’

Factuality Level: 8
Factuality Justification: The article provides accurate information about Amazon’s tax payments and investments in the UK, includes quotes from an expert source, and presents both sides of the argument.
Noise Level: 3
Noise Justification: The article provides relevant information about Amazon’s tax situation in the UK and includes quotes from an expert to support the claims made. However, it could benefit from more detailed analysis or context on the broader implications of this trend for the economy and local businesses.
Financial Relevance: Yes
Financial Markets Impacted: UK financial markets
Financial Rating Justification: The article discusses Amazon’s tax payments and investments in the UK, which can impact the company’s financial performance and its relationship with local businesses and the government. This has implications for the UK market and potentially other companies operating in a similar manner.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text, and the situation with Amazon’s tax payments can be considered a minor issue compared to natural disasters, financial crises, or major accidents.

Reported publicly: www.retailsector.co.uk