Online Retail Giant Pays Less Tax Despite Soaring Profits
- Amazon’s UK corporation tax bill halved in 2017 despite tripling pre-tax profits
- £4.5m paid in tax compared to £7.4m in 2016
- Only 6% of pre-tax profits went towards corporation tax
- Employees received £3,000 in share rewards on average
- Average salary for warehouse and logistics staff was £33,000
Amazon’s UK corporation tax bill dropped to £4.5m in 2017, its lowest in five years, despite a tripling of pre-tax profits to £72m. The company paid only £1.7m after deferring £2.9m. In 2016, the tax bill was £7.4m (36% higher) when pre-tax profits were £24m. Amazon UK’s reduced tax bill resulted from rewarding full-time warehouse employees with shares, averaging £3,000 per employee. The average salary for 19,749 staff and management was £33,000.
Factuality Level: 8
Factuality Justification: The article provides accurate information about Amazon’s UK corporation tax bill, pre-tax profits, and employee rewards, as well as quotes from an Amazon spokesperson. It also offers context on the retail industry’s competitive nature and investment. However, it could be improved by providing more details on how the share rewards affected the tax bill specifically.
Noise Level: 3
Noise Justification: The article provides relevant information about Amazon’s UK corporation tax bill and its relation to the company’s profits, as well as details on employee rewards and salaries. However, it could benefit from more in-depth analysis of the factors contributing to low profit margins and a broader discussion on corporate tax policies.
Financial Relevance: Yes
Financial Markets Impacted: UK corporation tax
Financial Rating Justification: The article discusses Amazon’s UK corporation tax bill, which impacts the financial market as it involves taxes paid by a major company in the country.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the text.
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