Feeds

Google, Amazon, Starbucks are 'immoral' and 'ridiculous' over UK tax

'We don't make any money here' insists milkbar bigwig

3 Big data security analytics techniques

MPs didn't shrink from telling senior execs from Amazon, Starbucks and Google that they were "ridiculous", "unbelievable" and "immoral" about their UK taxes.

Under questioning from the Public Accounts Committee, Andrew Cecil, the director of public policy for Amazon, tried to claim that he had no idea what sales were made in Britain alone because European sales were taken as a whole. Cecil also said that the Luxembourg-based headquarters for Amazon EU S.a.r.L. was owned by a holding company but couldn't explain why that was necessary or who then owned that holding company.

The committee said that Amazon.co.uk gave every impression of being a British firm, books that were ordered from the site came through the Royal Mail, from a UK fulfilment warehouse that billed the person, but somehow taxes ended up being paid in Luxembourg, where the rate is less than the UK's.

But Cecil said that some taxes were paid in Britain by Amazon UK Ltd, the company that ran the fulfilment centres in the country, among other jobs. He said that Amazon paid £1.8m in corporation tax on over £200m turnover in 2011. He also said that Amazon EU S.a.r.L. turned over €9.1bn, but somehow only made a profit of €20m.

The MPs said that they weren't against internet shopping, most of them were happy customers of Amazon, but they just couldn't understand how the figures worked out the way did.

"I'm a satisfied customer," Austin Mitchell, Labour MP, said. "I love those emails you send asking me if I want that biography of John Major or Fifty Shades of Grey… [but] your business is here, your customers are here."

Cecil stuck with the same answer to almost every question, protesting "We're a pan-European company!" at least five times.

The MPs in the committee were increasingly exasperated at what they termed "evasive" and "ridiculous" answers.

"You've come with nothing!" Labour MP Margaret Hodge exclaimed after Cecil once again said he didn't have the answer to a question with him. "We will have to order a serious person to appear before us and answer our questions."

Google VP for sales and operations in Northern and Central Europe, Matt Brittin, was refreshingly blunt by comparison, admitting that Google's European operations were set up in Ireland because its corporation tax was just 12.5 per cent versus 20 to 24 per cent in the UK.

He said Ireland also offered a skilled workforce since tech companies like Intel and Microsoft were already in the country but one reason to set up there was the favourable tax rate.

When Hodge asked why Ireland paid money on to the Netherlands, Brittin said that was no longer "necessary" but admitted it was a setup that used to help the company out with tax. He also admitted to having operations in tax haven Bermuda, which he claimed were to hold intellectual property rights outside the US.

Combat fraud and increase customer satisfaction

More from The Register

next story
Lavabit loses contempt of court appeal over protecting Snowden, customers
Judges rule complaints about government power are too little, too late
Don't let no-hire pact suit witnesses call Steve Jobs a bullyboy, plead Apple and Google
'Irrelevant' character evidence should be excluded – lawyers
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
EFF: Feds plan to put 52 MILLION FACES into recognition database
System would identify faces as part of biometrics collection
Edward Snowden on his Putin TV appearance: 'Why all the criticism?'
Denies Q&A cameo was meant to slam US, big-up Russia
Ex-Tony Blair adviser is new top boss at UK spy-hive GCHQ
Robert Hannigan to replace Sir Iain Lobban in the autumn
Judge halts spread of zombie Nortel patents to Texas in Google trial
Epic Rockstar patent war to be waged in California
US Supreme Court supremo rakes Aereo lawman in oral arguments
Antenna-array content streamers: 'Ruling against us could dissipate the cloud'
prev story

Whitepapers

Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.