Amazon’s corporation tax in the UK has dropped to £4.6 million for 2017, from £7.4 million the year prior, despite increased profits and revenues from its operations.
The figures are those according to a filing on Companies House.
The cut to the tax bill comes despite an increase in operating profit at the online giant. Amazon UK’s operating profit grew to £79 million from around £26 million the year before.
An Amazon UK spokesperson has said it paid all the tax it was required to “in the UK and every country where we operate.”
“Corporstion tax is based on profits, not revenues, and our profits have remained low given retail is a highly competitive, low margin business and our continued heavy investment,” he said in a statement.
Amazon UK Services processes, packages and posts deliveries to UK customers. Turnover for Amazon in the UK rose from £1.43bn to nearly £1.98bn generated through online shopping and entertainment.
Amazon has recently reported record quarterly profits of $2.53bn internationally for the thre months to June 30. It was 12 times more than Jeff Bezos’ company made during the same period last year.
Amazon reports its revenues from UK sales through a separate company based in Luxembourg. The £1.98bn figure is a charge reported by Amazon Services UK to the parent company for the cost of making deliveries to customers.
Investment specialists have called for ‘more reflection on the need for digital taxation,’ citing the report as ‘indicative of how tax policy hasn’t moved on.’