Amazon is making profits from fraud, says Labour’s Flint
AMAZON has been accused of “profiteering” from fraud and putting UK firms “who play by the rules” out of business. MPs on the Commons Public Accounts Committee said the internet giant was not doing enough to tackle overseas traders who use their site and evade paying VAT.
It comes after a crackdown by HMRC on tax evasion by overseas traders that sell goods in the UK via online marketplaces such as eBay, Amazon and others without paying the 20pc tax.
HMRC estimates that online VAT fraud and error cost between £1bn and £1.5bn in lost tax revenue in 2015-16 alone, according to the findings of a National Audit Office (NAO) investigation.
During a session of the committee yesterday, Labour MP Caroline Flint suggested Amazon had a “very embedded relationship” with their overseas sellers and accused the retailer of “making profits from fraud”.
Steve Dishman, Amazon’s vice president for taxes, replied: “We would like all bad actors off our platform.”
Joe Billante, for eBay in Europe, said: “If we are notified, we take action.”