Amazon’s murky global tax strategy has been revealed in a new study “The Amazon Method”.
The researchers analyze Amazon’s “Tax Credit Arbitrage Scheme” and identify Luxembourg as the coordinating centre of a global tax dodging operation.
“In the middle of a costly pandemic, delivering tax justice and fairness worldwide is more vital than ever. We cannot afford the tax abuses of multinationals. Scammers like Amazon must pay their fair share back to the taxpayers they’ve been fleecing for years,” said Martin Schirdewan MEP, Co-President of The Left.
The research explains how Amazon’s Luxembourg subsidiaries report massive operating losses from their non-American business dealings. This enables the company to collect loss carryforwards, which it turns into tax credits in the US, meaning the company is most likely paying little or no tax at all.
The amount of loss accumulated by 2020 goes beyond the total income tax due in the group’s entire history. Since 2011, the company has made more untaxed profits than the total amount of taxes it has ever owed.