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It’s not really that simple to measure the ‘value’ extracted from a specific country. If we’re considering digital goods Amazon UK could just transfer the profi
by wwtrv 5y ago
It’s not really that simple to measure the ‘value’ extracted from a specific country. If we’re considering digital goods Amazon UK could just transfer the profits to Amazon Luxemburg by signing an IP licensing agreement etc. for the same amount they would be taxes on in the UK. So the UK entity would operate at a loss/zero profit. AFAIK many companies are already doing this.
- aembleton 5y agoAmazon Luxemburg is not a UK company, so it wouldn't feature in the UK costs. They would have to pay tax on UK sales - UK costs. Import more (including IP) and you pay more tax unless you also increase your UK costs.