Amazon’s tiny tax bill in contrast to its huge European revenues sparked outrage among industry peers, who called for an end to the “deeply unfair” tax system.
The online retail giant paid just 16.5 million euros (19.5 million U.S. dollars) in tax on European revenues of 21.6 billion euors (25.5 billion dollars) reported through Luxembourg in 2016, the Guardian reported Thursday, citing the company’s latest annual accounts for its European online retail business.
Amazon U.K. services, the company’s warehouse and logistics operation, more than halved its U.K. corporation tax bill from 15.8 million British pounds (20.4 million dollars) to 7.4 million pounds (9.6 million dollars) year-on-year in 2016, whereas turnover at the U.K. business rose to almost 1.5 billion pounds (1.9 billion dollars) in 2016, reported the Guardian.
Amazon’s controversial tax bill caused a widespread outcry amont local bricks-and-mortar bookstores which found it increasingly hard to compete against the e-commerce giant.
“This deeply unfair system must end,” the Booksellers Association’s head of corporate affairs Giles Clifton told the Guardian. “It is simply wrong that the current system is so heavily weighted against bricks-and-mortar retailers.”