WASHINGTON — Internet retail giant Amazon.com paid $3.7 million in British taxes on its 2012 income, according to a Reuters newswire.
Amazon UK, the company’s British unit, earned $6.5 billion in income and received over $2.5 million in government grants last year. Amazon.com is doing well and forcing competitors to adjust to its online-only sales and marketing style.
Some Britons wonder why Amazon reported lower taxes, but it is due to a corporate income tax bill. The bill allows Amazon’s Luxembourg unit to process British customer requests and pays a smaller income tax. But, Amazon UK is paid for the fees incurred by the customer transactions and processing.
Because of the recent economic slowdown, European countries are looking for ways to increase revenue. By taxing big corporations like Amazon and Google, which France is proposing, it can gain some tax revenue to offset the current economic doldrums.