Fair Tax Mark, a business transparency organization, has conducted an analysis showing that Amazon has achieved real championship in tax avoidance.
Amazon avoids taxes most effectively, this is the result of the report the British organization Fair Tax Mark, analyzing the market in terms of fulfilling the tax obligation. How can we read on the organization's website "This is the only program of its kind in the UK that bridges the gap between corporate responsibility and the wider tax justice movement. "
This time, the association's sights were Silicon Six, the largest global IT companies. In addition to Amazon, Fair Tax Mark checked how Facebook, Google, Netflix, Apple and Microsoft fulfill their tax obligations.
According to the organization, Amazon has mastered tax evasion, but each of these companies has something behind its ears. According to the authors of the report, corporate income tax paid by companies from Silicon Six is much lower than is commonly believed. In the years 2010–2019, the difference between the expected taxes resulting from the basic rate and actually paid was USD 155.3 billion. The authors suggest that most tax savings relate to revenues earned outside the United States, given that foreign current tax burden accounted for only 8.4% of the identified foreign profits in 2010–19. Profits are still transferred to tax havens, especially to Bermuda, Ireland, Luxembourg and the Netherlands.
In terms of ranking, none of the six companies is an example of responsible tax proceedings. However, the degree of irresponsibility and the tax contribution are different. Amazon paid just $ 3.4 billion in income tax during this decade, while Apple paid $ 93.8 billion and Microsoft paid $ 46.9 billion. This is a staggering difference, especially since Amazon's revenues in this period exceeded Microsoft's revenues by almost $ 80 billion.
Fragment of the report Fair Tax Mark.
According to data collected by Fair Tax Mark, Amazon paid just $ 3.4 billion in income tax in 2010-2019. The tax paid in the last decade by this company accounted for 12.7 percent. profit, even though the US federal base tax rate was 35 percent (in force for seven years out of the eight audited). The authors emphasize that thanks to such tax optimization, Amazon increases its market advantage, often at the expense of small, more socially responsible local enterprises.
Facebook is also doing well. In the case of this social media giant, the tax paid in the last decade was just 10.2 percent. on earned profit. Over the past ten years, Facebook has escaped 5% only tax for the countries in which it operates.