Amazon Europe in 2021 sales increased by 7 billion but

Amazon Europe, in 2021 sales increased by 7 billion, but zero euros in taxes. In fact, the tax bonus comes from a billion

In 2021, “Amazon Europe Entity”, a Luxembourgbased division to which the activities of Great Britain, Germany, France, Italy, Spain, Poland, Netherlands and Sweden, he paid no taxes. In fact, it received a €1 billion tax credit. This in view of a sales increase of 17% a 51.3 billion euros. However, taxes will still be charged Profits that did not exist for Amazon Eu. In fact, the company reported a loss of 1.2 billion euros. Strange given that the company’s revenue has increased by 22%, costs have not increased and at the level of the entire group 2021 closed with a profit of 24.9 billion, two billion more than the previous year. The fact that the company is not making any profits in Europe is nothing new. The head office is in Luxembourg the activities are managed by this unit

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The small country has an extremely favorable tax regime, especially a lot lax in relation to transfers of earnings elsewhereprobably in secret jurisdictions like the usual ones Virgin Islands, Cayman, etc., Jersey, Delaware, etc (most of them directly attributable to Great Britain). The profits are taxed here derisive or nonexistent prices. Ultimately, the “game” by which multinationals move profits is quite simple. Subsidiaries of the same group based elsewhere sell licenses, programs, patents, etc. to the divisions of countries where the tax rate is higher. For example, Alphabet (Google) affiliates around the world purchase licenses from Google Bermuda every year. Most large companies do the same, some more, some less.

An Amazon spokesman said the company is taxable in all of its European subsidiaries and that revenue, profits and taxes are recorded and reported directly to local tax authorities. “Across Europe we pay a tax Corporate profits of several hundred million euros‘ the spokesman for Amazon said. Asked by Ilfattoquotidiano.it, the company points out that 345 million euros are unspecified in Italy “Tax Contributions”, so it is not the normal corporate tax, but a much broader definition. On the other hand, Amazon did not answer the question about the profits made in Italy. A statement from the group said that the $1 billion tax benefit “is primarily due to net loss carryforwards under the tax consolidation scheme.” The Luxembourg company Amazon has almost 7,000 employees and has registered 37 billion euros spent on “raw materials and supplies” and 15 billion in “external charges” that led to the annual loss. “We are investing heavily in job creation and infrastructure across Europe more than €100 billion since 2010,” said an Amazon representative.