Ecommerce: Tax Avoidance
Context
Your company uses complex international structures to reduce its tax burden, following legal frameworks but drawing global scrutiny. Investigations across multiple countries question your fairness, and critics argue you benefit from public infrastructure without contributing your share.
Dilemma
A) Proactively reform your tax approach, increase local contributions, and adopt a transparent policy.
B) Maintain current strategies, emphasize legality, and defend your practices as standard business optimization.
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.
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| Last modified: | 06 June 2025 2.33 p.m. |