The Tax Advantage: The Digital Deductions

Context

Your financial advisors have identified legal tax loopholes that could significantly reduce your corporate tax burden. This would result in a lower tax rate than most businesses, shifting the burden to other taxpayers.

Dilemma

Do you:
A) Maximize profits using tax loopholes, or
B) Forgo loopholes, contributing more to public funds?

Summary

Amazon's tax behaviours have been investigated in China, Germany, Poland, Sweden, South Korea, France, Japan, Ireland, Singapore, Luxembourg, Italy, Spain, United Kingdom, multiple states in the United States, and Portugal. According to a report released by Fair Tax Mark in 2019, Amazon is the best actor of tax avoidance, having paid a 12% effective tax rate between 2010 and 2018, in contrast with 35% corporate tax rate in the US during the same period. Amazon countered that it had a 24% effective tax rate during the same period.

Resources:

• https://en.wikipedia.org/wiki/Amazon_tax