Amazon has signalled that it's about to end some of its more controversial money-funneling tax-dodging schemes, with the internet sales giant saying it's about to book all UK sales in the UK -- opening it up to a potentially larger tax bill.
The shop's tax structure was apparently overhauled at the beginning of May, with all the money taken from UK sales now appearing on the balance sheet in a more transparent way via a newly opened London accounting office. Previously, Amazon and several other wealthy multinationals, have avoided paying the UK's higher rates of corporation tax by booking revenue through offices in Luxembourg and Ireland.
Amazon says it went legit on May 1st, explaining: "As of May 1, Amazon EU Sarl is recording retail sales made to customers in the UK through the UK branch. Previously, these retail sales were recorded in Luxembourg."
With Amazon recording income of around $8.4bn (£5.4bn) through its UK operations in 2014, it may mean the country's tax revenue increases a little. Although, with the UK's corporation taxes paid on company profits rather than revenue, there are still plenty of ways Amazon can reduce its tax bill by shuffling the numbers around to record a tiny profit or show a technical loss. [Guardian]