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Amazon UK pays $3.7 million in taxes, Britain unhappy

WASHINGTON — Internet retail giant Amazon.com paid $3.7 million in British taxes on its 2012 income, according to a Reuters newswire [1].

amazon warehouse [2]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 [3], European countries are looking for ways to increase revenue. By taxing big corporations like Amazon and Google, which France is proposing [4], it can gain some tax revenue to offset the current economic doldrums.