Fair Tax for Tech Companies
In October 2017, eBay paid £1.6 million in tax despite registering revenue of $1.3 billion in the UK. Similarly, in March, it was recorded that Google’s tax liability was £50 million despite UK sales totalling £5.7 billion.
Amazon UK Services bill was £4.6m, down from £7.4m a year ago, accounts show. This means that the company has paid £1.7m in tax, even though pre-tax profits jumped from £24.3m to £72.3m.
I believe that tech behemoths that are accruing large amounts of revenue in the UK should pay their fair share of tax. Taxation is what underpins our shared prosperity. All of us, including business, benefit from a healthy, educated and skilled population, with access to basic services and secure housing.
On numerous occasions in Parliament, I have also called on the larger online companies, such as Amazon, Facebook and Google to pay the correct amount of tax in this country, and in the case of Amazon, that they should also pay their workforce fairly. An Amazon packer in the UK earns just £8.20 an hour, while its founder, and CEO, Jeff Bezos earns £2.2 million an hour.
The huge imbalances in the taxation system indicates the extent to which our corporate tax system has become divorced from the realities of our modern economy. Many multinational companies limit their tax liability by employing tactics such as transfer pricing and share awards. Large multinational technological companies are also increasingly shifting profits offshore to tax havens and countries with low-tax regimes.
If you, like me, believe that large online companies should pay their fair share of tax, then sign the petition below.