Former leading New Zealand publisher and bookseller, and widely experienced judge of both the Commonwealth Writers Prize and the Montana New Zealand Book Awards, talks about what he is currently reading, what impresses him and what doesn't, along with chat about the international English language book scene, and links to sites of interest to booklovers.
Friday, November 16, 2012
John Lewis warns Amazon's tax avoidance 'will drive UK companies out of business'
The Government must address the "Amazon tax issue" or risk driving UK-based
retailers out of business, the managing director of John Lewis has warned.
Andy Street said Amazon would
'out-invest' and 'out-trade' UK companies if the Government does not take
Andy Street said Amazon would “out-invest” and
“out-trade” UK companies if the Government does not take action to force the
online retailer to pay tax fairly in Britain.
“There is less money to invest if you are giving 27pc of your profits to the
Exchequer,” Mr Street told Sky’s Jeff Randall. “Clearly, if you are domiciled in
a tax haven you’ve got much more [money]. They [Amazon] will out invest and
ultimately out trade us. And that means there will not be a tax base in the UK.”
Mr Street said that both HMRC and the Treasury had to look at ensuring that
money “earned in a particular country” was “taxed in that country”.
The comments come in the wake of Amazon’s showdown with MPs, who this week
called the online retailer “immoral” for diverting profits to Luxembourg and
demanded the company send a more “senior” executive to answer further questions.
The Public Accounts Committee, led by Margaret Hodge, scolded Andrew Cecil, head
of public policy at Amazon, for stonewalling the Committee with “unacceptable
The company has sparked outrage because despite having warehouses in the UK
and employing 15,000 people, it drives all of its sales through Luxembourg.
According to conservative MP Charlie Elphicke, last year Amazon’s UK sales
amounted to £3.9bn but the company paid just £1.9m in tax – the equivalent of
just 2.5pc of its estimated profits, based on its global operating margin. Full story at The Telegraph