One of the most frequent criticisms against the large technology – among other giants of different industries – lies in the fact that your taxation is always benefit from tactics they are allowed to save billions of dollars and, at the same time, not help the coffers of various economies in which they operate successfully for years.
Amazon was a classic example the use of complex structures to reduce taxes paying individually in European countries, but the company has announced that it is reporting its income at its operations in Britain, Germany, Italy and Spain. That means that now you will pay more taxes in these countries, although the change of model is not completely free of any other questionable practice.
The situation is improving
The European Commission takes time researching both this company and Apple about possible arrangements to pay few taxes in Ireland and Luxembourg, where these companies centralized their operations in the continent. Amazon officials have not said anything about the change in their policies of taxation in these European countries respond to the pressure of the EC, but could be just the first examples that also could follow others such as the aforementioned Apple or Google.
Countries like Ireland also announced at the end of the year that it would facilitate the famous “Double Irish” mechanism which is often used by technology companies and that it saved them to those companies pay a lot of taxes. Consumers criticized the fact that while they pay their taxes, these companies they managed to avoid their duties with the public coffers.
Therefore the company will the tax rebate through four European countries. However, the taxes paid by Amazon they depend on the benefits, and not of the total sales, which implies that taxation may not be again which should theoretically be in an ideal setting.