There’s a case for an ‘Amazon tax’, but it isn’t saving the high street | Conservative Home


Philip Hammond’s proposals for a so-called ‘Amazon tax’ on online retailers addresses a legitimate problem.

When multinational businesses can cut their tax bills despite soaring profits, that’s a sign of an ill-designed and out of date tax code. The Chancellor is right to take corrective measures.

However, there are two parts of the Amazon tax story which are concerning.

The first is Hammond’s stated willingness to press ahead with a levy on web giants even before he can secure international agreement – it would be bad for the buying public and the Government both if precipitate action were to make the UK an unattractive place to invest.

The second is that one of the arguments being adduced in favour of the new tax is to “create a level playing field” with ailing bricks-and-mortar retailers.

 

Source: There’s a case for an ‘Amazon tax’, but it isn’t saving the high street | Conservative Home

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3 thoughts on “There’s a case for an ‘Amazon tax’, but it isn’t saving the high street | Conservative Home

  1. The problem is that even the Tories use offshore domains to ‘ legally avoid taxation ‘ my post here explains how its both legal and using simple effective tax lawyers can mitigate taxation: https://acenewsservices.wordpress.com/2018/08/03/u-k-its-easy-when-you-know-how-amazon-uk-online-giant-says-we-paid-every-penny-of-tax-it-is-required-to-in-every-country-where-it-operates-what-it-does-not-say-is-that-where-it-is-registere/ ……… its not evasion … l worked in this area and had my own offshore company and built them for lending and saving tax. If Hammond taxes online companies the cost will be added to the goods people buy and cost Amazon nothing. It will increase borrowing in the credit markets. And will not save a dying high street its too little too late …. as people’s way of living their lives has changed to online home delivery and not tramping high streets …

    Liked by 1 person

  2. Good to hear this thinking from the other side of the Big Pond. Nobody here seems to be thinking about the huge and devastating impact of online retailing on local communities, much less the tax stream.

    Like

  3. You are correct for tax evasion is ilegal, while tax aviodance is not assuming one keeps within the tax rules and regulations.

    But the general population look at the various figures and feel these companies should pay, but the only way this can be done is to close all the loopholes and therefore mitigate tax aviodance and also have effective investigation wtructures to mitigate tax evasion.

    In some instances the Government create avenues for tax aviodance such as ISAs for personal tax payers.

    Even if the Government closed all the loopholes, if that is what they are, tax accountants would look through the current tax legislation and will then, most like, find more.

    Is it not good that permanent Amazon employees are given Amazon shares, which will be tax deductible as is paying profits back into the company and others.

    On these shares, depending on each employees tax situation, the employees will be taxed on dividends they receive.

    If the Government wishes to stop reinvestment then tax away.

    Do the Civil Servants, who really govern the country, know what they are doing.

    Like

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