Amazon told to come clean on UK tax bill

AMAZON was last night ordered to reveal its business rates bill amid fears it is killing the High Street.

As a profit warning from Asos sent shares in UK retailers tumbling, the internet group was told by MPs to finally come clean about how much tax it pays in Britain.

So far Amazon has refused to reveal how much it pays in business rates but it is thought to be much lower than traditional retailers, such as Debenhams and John Lewis, which are struggling to compete.

The Silicon Valley giant has also been criticised for the amount of corporation tax it pays in the UK. Politicians are concerned a low tax bill gives Amazon a huge commercial advantage over traditional stores, which have been hit with big increases in rates and rents in recent years.

The Mail is campaigning to save the High Street by reforming business rates, slashing parking charges and introducing a fair tax for online shopping firms to create a level playing field.

Billions of pounds were wiped off the value of British retailers yesterday after Asos warned that sales and profits would be lower than expected – stoking fears of a bleak Christmas for the sector. The Housing, Communities and Local Government committee has demanded that Amazon provide its corporation tax and business rates bill for the UK as well as its annual sales. Asked whether Amazon could provide the committee with the figures, Lesley Smith, director of public policy at Amazon, said: ‘I will need to take advice.’

Committee chairman Labour MP Clive Betts shot back, saying: ‘Well, I’m formally asking you to provide them.’

Tory MP Nicky Morgan, chairman of the Treasury Select Committee, warned thousands of shops are facing their last Christmas unless the Chancellor reforms business rates.

According to analysis of local government data by Altus Group, Amazon’s 2018 business rates bill totalled £38.02m. The bill covers its 189 sites across the UK including electronic lockers, offices and warehouses. This is compared with £80m paid by Debenhams and John Lewis’s £174m business rates bill in 2018.

Robert Hayton, head of UK business rates, Altus Group, said: ‘Traditional bricks and mortar retailing is property intensive. Their reliance on property leads to a larger tax to turnover ratio that, if left unchecked, will lead to further deterioration of our high streets and local communities.’