Friday, 10 September, 2021

Gafa: how Amazon escapes tax


According to estimates, the Amazon company is expected to achieve $ 7 billion to $ 8 billion in revenue this year. But she only pays 10 million euros in taxes. How does she do it?

Gafa: How Amazon escapes tax

Amazon is by far the number 1 in e-commerce in France. According to estimates by the Kantar Institute, in a market of nearly 39 billion euros, Amazon should this year achieve 20% of the profits of this market, i.e. an estimated turnover of 7 to 8 billion euros, explains the journalist David BoƩri on the set of the 13 Hours of France 2. Except that this year, the group declared 1.3 billion euros in turnover, and in the end, paid just 10 million euros in tax.

Tax relocation

There is nothing illegal to speak of. Amazon practices tax optimization like all multinationals. Concretely, the profits made in France, as in other European countries, are transferred to Amazon Services Europe, which is a subsidiary based in Luxembourg. It is therefore there that the group pays most of its taxes, with a much lower tax rate. It is quite simply what is called fiscal delocalization, it is this mechanism which is targeted by the Gafa tax set up by the government.