TUESDAY, 28 JAN 2020



Facebook Linked In Twitter

Costas Kadis Attends EU Council Debating European Green Deal And Cap

Kyriakos Koushos: Licensing Of Blocks Affecting Interests Of Third Parties Is Unacceptable



brought to you by CIPA

Amazon Europe Received €241m in Tax Credits in 2018

Amazon Europe Received €241m in Tax Credits in 2018

The retailer reported a pre-tax loss of €493m despite sales rising by 11.6% to €28bn, The Guardian reports.

Amazon received €241m in tax credits last year that it can deduct from future bills for its European business, despite efforts by authorities in Brussels to ensure the company pays more tax.

Amazon Europe, which is based in Luxembourg and aggregates the billions of pounds of sales the retailer makes from individual countries across the continent, received the credits after reporting a pre-tax loss of €493m in 2018. Sales rose 11.6% to €28bn.

The company, which is being pursued by the European commission for more than €250m over “illegal tax advantages” in Luxembourg, said it made the loss after investing more than €7.4bn in new fulfilment centres, head offices and services for customers across Europe. Amazon Europe also paid out €114.3bn in licence and royalty payments, partly to affiliated businesses. Tax campaigners suggest such payments help reduce profits and tax payments in particular territories.

EU legislators got tough after years of relatively low tax payments by the US-based tech firm. In 2017, Amazon paid €55m in tax on European revenues of €24.9bn, and €16.5m on revenues of €21.6bn in 2016.

Amazon Europe’s latest accounts state that in March it set aside money in an escrow account to cover the potential EU tax penalty. The document says the company continued to “defend ourselves vigorously” against the claim.

“Amazon pays all the taxes required in every country where we operate,” said a spokesman for the company. “Corporate tax is based on profits, not revenues, and our profits have remained low given our heavy investments and the fact that retail is a highly competitive, low-margin business.”

The company says it has invested €55bn in Europe since 2010 and now has more than 50 fulfilment centres, 100 corporate offices and in excess of 95,000 full-time employees across Europe.

Accounts for Amazon UK’s warehouse and logistics division, Amazon UK Services, published on Monday also revealed that staff were able to cash in a bumper $221m payout in 2018 from shares vesting under the company bonus scheme. The payout was up by more than a third on the $164m received in 2017, thanks to its surging share price.

Last year’s staff shares paid out an an average stock price of $1,611, well up on the $992 average share price in 2017.

The company set aside £67.9m in 2018 for new share awards for staff, up from £54.8m a year before. Future share payouts are expected to reduce in 2019 after the company ditched annual share bonuses for UK warehouse workers.

Share-based payments help Amazon reduce its effective tax bill in the UK considerably.

Amazon UK Services received a £14m corporation tax bill in 2018, up by nearly £10m on its 2017 bill. But accounts published on Monday show Amazon expects to pay £1.06m in tax to UK authorities for 2018, down from £1.7m the previous year. That’s after £13m of the bill is offset by tax credits relating to share-based payments, up from £3m in 2017.


Brexit Withdrawal Agreement Passes The First European Parliament Test

The Constitutional Affairs Committee agreed on Thursday to recommend that the EP plenary ...

George Soros Gives $1bn To Fund Universities And Stop Drift Towards Authoritarianism

The philanthropist and former financier George Soros has announced that he is ...

What Can You Use Instead Of Google And Facebook?

"We agree to give these companies ownership of our lives and they are cashing ...



Petroleum Products Sales for December 2019

The total sales of petroleum products in December 2019 recorded a reduction of 5,3% compared to the previous month, according to data released by CyStat. A ...

London Loses Reigns As Global Finance Hub

London has surrendered its position as the world’s top financial centre to New York due in part to uncertainty over Brexit, according to a survey of ...

Decentralized Nicosia Chapter Upcoming Event

In light of the avid interest in Decentralized Finance and tokenization of assets, the Decentralized Nicosia Chapter is opening its doors for another ...

The Cyprus Government Has Ratified The Multilateral Instrument

On 22 January 2020, the Instrument of Ratification of the Multilateral Convention to Implement Tax Treaty Related Matters to Prevent Base Erosion and Profit ...

PEK LTD: Delivering High-Quality Professional Services

PEK was established on 1 January, 1997, first as a partnership and later as a limited liability company, approved by The Institute of Certified Public ...

Kyriakos Koushos: Licensing Of Blocks Affecting Interests Of Third Parties Is Unacceptable

Cyprus Government Spokesman Kyriakos Koushos has told the Cyprus News Agency (CNA) that any licensing of a block for oil and gas exploration affecting the ...

Data Management: A Measurable Value For Every Company

George Z. Georgiou & Associates LLC presents the 3rd Data Management Forum which will take place on Thursday, 5 March 2020 at Hilton Nicosia (formerly ...

Costas Kadis Attends EU Council Debating European Green Deal And Cap

Cyprus’ Minister of Agriculture Costas Kadis is going to Brussels to attend the Agriculture and Fisheries Council that convenes there on ...