Amazon’s tax affairs unfair, say UK firms

BRITISH businesses suffer because they pay more tax than firms such as Amazon, the boss of John Lewis has said.

It is not fair that companies based in Britain pay UK corporation tax, while multinationals operating here but based abroad do not, added Andy Street.

It means those companies have an unfair advantage, he said, suggesting it could force out British businesses already struggling to compete against internet sales.

Mr Street said: ‘Two companies making the same profit, one of them pays corporation tax at the UK rate, one does not because it claims to be headquartered somewhere else – that is not fair.

‘It matters because the company paying corporation tax has less to invest in its future and that is a critical differentiator.’

Asked if he thought there was still an ‘Amazon tax problem’, he told ITV News: ‘There still is.’

He added: ‘This is about those UK companies paying corporation tax on the profit made in the UK, against companies that make profit here but do not declare it and therefore do not pay tax.’

John Lewis online sales soared by more than 21 per cent in the six weeks to January 2, making up 40 per cent of revenue over the Christmas trading period. Sales in its stores fell by 1.2 per cent.

Accounts for the John Lewis Partnership show a tax bill of £50.9million for 2015, with revenue of £9.7billion and profits of £194.4million before tax.