Thanks to a well-crafted tax optimization mechanism, Amazon did not pay taxes on its income generated in Europe in 2021, reveals Bloomberg. The American giant has even managed the feat of benefiting from a tax credit of one billion euros even though the company recorded a turnover of 51.3 billion euros in 2021 on the Old Continent, up 17% year-on-year.
How ? By declaring a loss of 1.16 billion euros in order to escape corporate tax. Amazon, which centralizes all of its European activities in a parent company in Luxembourg because of the advantageous taxation in this country, has indeed declared expenses of 37 billion euros for “raw materials and consumables” and 15 billion for ” external charges “.
“Corporate tax is based on profits”
With such charges, the company finds itself in deficit. “We are investing heavily in creating jobs and infrastructure across Europe, over €100 billion since 2010. Corporate tax is based on profits, not income,” one of Amazon’s representatives told Bloomberg.
Source: 20minutes
