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Amazon UK Gets Tax Credit Amid Profit Surge
Description
Amazon’s UK arm got a seven-point-six-million-pound tax credit despite posting a 25% profit surge to 355 million pounds — sparking confusion and criticism. The credit stems from tax adjustments tied to massive UK investments — over five billion pounds in warehouses, offices, and data centers — qualifying them for government relief. While Amazon touts its overall tax contributions exceeding one billion pounds, critics like the Fair Tax Foundation highlight an effective UK corporation tax rate of just 7.1%, raising questions about fairness for other businesses. Amazon counters that the filings don’t reflect the full scope of its UK operations and that much revenue flows through its Luxembourg base, which pays tax there — leaving the UK’s tax picture murky and calling for greater transparency.
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