Corporate filing records prove that online e-commerce site Amazon hadn’t paid the operations tax in Europe for the year 2020 even though they had a record sales of €43.8 billions. Amazon spokesman said that profits were very low because of tight margins in retail and investment made by the company. He explains that corporate taxes are based on profits and not on incomes. Profits were very low because of high investments made by them.
Amazon have invested more than €78 billion in infrastructure which created thousands of new jobs, generate considerable local tax revenue and which act as a support for small European firms. The European Community is planning to release new tax proposals and it would work to combat fraudulent works and taxation problems.
The Fair Tax Foundation had calculated that Amazon had already paid a corporation tax of 9.8 percent among their total global profits for the last ten years. The stats shows the deterioration of their situation. Fair Tax Foundation executive Paul Monaghan said that he saw an accelerated market domination that is largely untaxed allowing it to undercut local businesses that take more responsible approach.