With an investigation by Guardians with regard to tax rule book in Britain, MP’s were raising voice for limiting the tax bill. According to the finding of the investigation, Amazon was really close to the breaking point with the activity of imposing the tax avoiding structure. A tough line is drawn from the HM revenue with the operation of multimillion British pounds.
The fact about the business being taxable is fairly indicated by its location. A negotiation in the contract was made by Luxembourg, Amazon and the Staff from British head office. Thrashing out of details of the contract was done by the mass from slough with regard to the discount that was agreed upon.
The advertisement companies also posted job for various position for Amazon. Even after the tax charge of £3.2m, Amazon was successful in receiving the tax grant of £2.5m. Thus, a new sit was opened at Hemel Hempstead. Amazon also has a good reason for avoiding the payment of ten million pound. According to the Chair person of public account committee, he is having concern about Amazon’s activity in avoiding the fare share of tax.
The Guardians investigation also looked into HMRC manuals, taxation treaties guidelines, and international double taxation treaties for finding the fair means of taxation. This has become a complex issue for all retail business that falls under this category. Even the tax officials did not comment on Amazon directly. But, they stated to ensure payment of tax by the multinationals in accordance with UK tax laws.