Amazon’s tax fighting fund rises to £2.7bn

AMAZOn has been forced to set aside more than £2.7bn as it fights a number of disputes with tax authorities around the world.

The uS tech group has built up the contingency funds in case it loses claims brought against it for alleged unpaid taxes, accounts show.

Authorities that have pursued it include the uS Internal Revenue Service (IRS) and the European Commission, with the cash put aside by Amazon to deal with legal clashes doubling between 2016 and 2018.

The figures have emerged after it defended its record in the uK, insisting its tax bill was just ‘one aspect’ of its contribution to the economy.

Critics accuse Amazon of using a complex structure – with money funnelled through a subsidiary in low-tax Luxembourg – that makes it effectively impossible to see the true extent of its overseas operations. It has also come under fire for paying just £63m in business rates last year on a property portfolio that includes its vast warehouses, compared to an estimated annual bill of nearly £300m paid by High Street retailer Marks & Spencer.

The latest accounts for Amazon uK Services, its warehousing and logistics arm, revealed it paid just £14m in corporation tax despite making £2.3bn in revenue. Yesterday, during Labour’s conference, Shadow Chancellor John McDonnell said: ‘Companies like Amazon will be made to pay their way.’

An Amazon spokesman said: ‘We are investing heavily in creating jobs and infrastructure across the uK. The uK has become one of Amazon’s largest global hubs for talent and this year we announced plans to create 2,000 jobs in the country. This investment helped contribute to a total tax contribution of £793m during 2018 – £220m in direct taxes and £573m in indirect taxes.’