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> despite collecting record income, the Luxembourg unit made a €1.2bn loss and therefore paid no tax. If they made a loss they pay no taxes. I'm not supportin
by mikkom 5y ago
> despite collecting record income, the Luxembourg unit made a €1.2bn loss and therefore paid no tax.
If they made a loss they pay no taxes. I'm not supporting tax avoidance but this is totally basic stuff. Most likely amazon grows and invests their profits to open new sites like Sweden and it costs money.
- deleted 5y ago[deleted]
- bildung 5y agoYes, but it isn't clear why they didn't make profits. Ikea locations also usually don't make a profit - because they have to pay "license fees" to the mothership registered in a tax haven.
- Reason077 5y agoThey also pay billions (almost $5 billion in FY 2020) in "royalties" back to the US parent company. So while Amazon Europe may report a loss in Europe, it certainly makes a lot of profit for Amazon Inc. (It's also helpful that foreign royalty income qualifies for a discount under US tax rules!)
- cigaser 5y agoMany people made loss last year and still have to pay. Argument is essentially "I should not pay any taxes, because I spend all my income on house renovation".
- lotsofpulp 5y agoThe argument is the law allows for deducting of business expenses. The law does not allow for deducting of house renovation expenses for personal taxes.