Google and Amazon are having a laugh

Amazon Coins
"I know! We'll pay HMRC with Amazon Coins!"

You've got to admire the cheek: when the UK government asked Google why its UK operation barely paid tax, Google's answer was that it only employed leprechauns and that as we all know, fictional creatures are tax-exempt.

Okay, not quite, but the real answer was hardly more believable: all those UK people selling from Google's UK offices to UK businesses aren't actually selling anything at all, because everything happens in Ireland. Amazon provides a similarly tall story: despite delivering goods from UK warehouses to UK addresses, everything it does takes place in Luxembourg.

Even the Luxembourg bit doesn't pay much tax: according to the Independent, it in turn pays fees to another, tax-exempt Amazon entity.

Can anything be done?

When Amazon is receiving more money in UK grants than it pays in UK corporation tax, something is terribly wrong.

Google's Matt Brittin says that "tax is not a matter of choice. Tax is a matter of following the law." He's right, but MPs claim that the law isn't being followed here, that Google and Amazon clearly don't do all the legwork in Dublin and Luxembourg, and that as a result the UK taxpayer is being cheated.

It certainly looks that way. Does anybody other than HMRC believe that Google doesn't do anything important in the UK, or that Amazon's 4,000-plus UK staff sit around all day doing nothing but humming?

This matters because Britain is apparently broke, and the firms that avoid tax are often driving other, tax-paying, companies out of business.

If what they're doing is illegal then they need the book thrown at them, and if it isn't then the law needs updated.

I'm not naive enough to think that cracking down on the tech firms will solve all of the world's problems - Amazon's "sod-profit let's-grow" strategy means it makes relatively small taxable profits anyway, and will continue to do so until it's the only retailer left on Earth.

But when HMRC names and shames kebab shop owners for unpaid tax you'd think it might want to do something about the billions of pounds that bigger firms aren't paying.

TOPICS
Carrie Marshall
Contributor

Writer, broadcaster, musician and kitchen gadget obsessive Carrie Marshall has been writing about tech since 1998, contributing sage advice and odd opinions to all kinds of magazines and websites as well as writing more than a dozen books. Her memoir, Carrie Kills A Man, is on sale now and her next book, about pop music, is out in 2025. She is the singer in Glaswegian rock band Unquiet Mind.

Latest in Tech
Josie and Matt laughing in front of the Google Pixel 9a
TechRadar Podcast: Is the Pixel 9a ugly? Has Apple ruined the smartwatch market? And is Samsung's One UI in trouble?
A Lego Pikachu tail next to a Pebble OS watch and a screenshot of Assassin's Creed Shadow
ICYMI: the week's 7 biggest tech stories from LG's excellent new OLED TV to our Assassin's Creed Shadow review
A triptych image of the Meridian Ellipse, LG C5 and Xiaomi 15.
5 amazing tech reviews of the week: LG's latest OLED TV is the best you can buy and Xiaomi's seriously powerful new phone
Beats Studio Pro Wireless Noise Cancelling Headphones in Black and Gold on yellow background with big savings text
The best Beats headphones you can buy drop to $169.99 at Best Buy's Tech Fest sale
Ray-Ban smart glasses with the Cpperni logo, an LED array, and a MacBook Air with M4 next to ecah other.
ICYMI: the week's 7 biggest tech stories from Twitter's massive outage to iRobot's impressive new Roombas
A triptych image featuring the Sennheiser HD 505, Apple iPad Air 11-inch (2025), and Apple MacBook Air 15-inch (M4).
5 unmissable tech reviews of the week: why the MacBook Air (M4) should be your next laptop and the best sounding OLED TV ever
Latest in News
Buzz Lightyear Space Ranger Spin Rennovations
Disney’s giving a classic Buzz Lightyear ride a tech overhaul – here's everything you need to know
Hisense U8 series TV on wall in living room
Hisense announces 2025 mini-LED TV lineup, with screen sizes up to 100 inches – and a surprising smart TV switch
Nintendo Music teaser art
Nintendo Music expands its library with songs from Kirby and the Forgotten Land and Tetris
Opera AI Tabs
Opera's new AI feature brings order to your browser tab chaos
An image of Pro-Ject's Flatten it closed and opened
Pro-Ject’s new vinyl flattener will fix any warped LPs you inadvertently buy on Record Store Day
The iPhone 16 Pro on a grey background
iPhone 17 Pro tipped to get 8K video recording – but I want these 3 video features instead