Amazon Corporation Tax

[AtW]

UK companies pay UK taxes and naturally pass down it as cost.

If Amazon does not pay UK taxes and don't pay same or higher level of tax elsewherem then it's likely that they would not pass it down as a cost and therefore gain unfair advantage.

Hence, tax dodging on such scale is unfair competition.

[d000hg]

UK companies pay UK taxes and naturally pass down it as cost.

Tax isn't an expense AtW, you pay it on profits. If you put of prices to cover tax, your taxes would be higher!

[AtW]

Tax isn't an expense AtW, you pay it on profits. If you put of prices to cover tax, your taxes would be higher!

If certain level of profits after tax is required then that would certainly affect sell prices, subject to competitive pressures of course.

[d000hg]

Isn't the aim to maximise profits?

[AtW]

Isn't the aim to maximise profits?

Profits can be maximised by using advantage of not having to pay tax on them, so that the price can be reduced to drive competitors out of business and later, when dominant position is established, make up for that.

This happens now -

Amazon's fees hike for third-party traders provokes fury | Technology | The Guardian

[d000hg]

Profits can be maximised by using advantage of not having to pay tax on them, so that the price can be reduced to drive competitors out of business and later, when dominant position is established, make up for that.

No because you have to be making a profit in the first place for avoiding tax to help. Remember tax is after all your salaries and expenses and R&D are done, so a company can simply drive down prices to the point it makes no profit if it wants to force others out of business, who have higher expense margins.

Avoiding tax on PROFITS does not allow Amazon to lower prices, the classic ploy is to sell so cheap you make no profit or even a loss.

[lilelvis2000]

UK Sales 4.3 Bn
Corporation Tax 2.5 million
but they got government grants of 2.5 million.

I need the number of their accountant!

have you got it yet? Please do pass on!

[AtW]

Remember tax is after all your salaries and expenses and R&D are done, so a company can simply drive down prices to the point it makes no profit if it wants to force others out of business, who have higher expense margins.

sasguru, are you here mate? I need a free advice - is d000hg a cretin?