Harvey takes on Amazon

GERRY Harvey has vowed that his company Harvey Norman will match Amazon on price when it launches in Australia later this year.

And the feisty Australian electronics and homewares founder is also promising to attack the $500 billion internet shopping giant for a failure to pay enough tax.

“They started 23 years ago, they are worth nearly $500 billion, they have virtually never paid any tax, they have virtually never made any profit,” Mr Harvey said.

“Their whole aim in life …. is to send everyone broke. They will be ruthless and relentless.”

The Harvey Norman founder will form a coalition with his competitors to campaign against Amazon for “contributing nothing to society” and is planning to “hound the Gov- ernment” and expose the company for transferring profit overseas so that it can minimise its tax contribution in Australia.

“When they come I will fight them to the death,” Mr Harvey said.

Between 2007 and 2015 Amazon paid on average 13 per cent tax, including all local, state and federal taxes, according to analysis from S&P Global Market Intelligence.

That compares with the US corporate tax rate of 35 per cent. Amazon’s net sales in the 12 months to December soared 27 per cent to $136 billion, but profit was only $4.2 billion. By reinvesting revenue back into the company its profit, or operating income, stays low, and tax is calculated on profit.

“If you haven’t got much operating income then you are not paying much tax,” Mr Harvey said.