Amazon? It will not be affected by Biden’s “global tax rate”. They left her yet another loophole
The G7 agreement on the Biden proposal has gathered the paeans of the mass media, all ready to praise the responsibility of Western countries ready to come to an agreement to hit those baddies of the multinationals who evade taxes. Too bad that the agreed rate is ridiculous and that, above all, "Holes" have been left that will allow the smartest, or the most favored, not to pay taxes.
As we learned over the weekend in a statement from G-7 ministers, a pillar of the agreement stipulated that the tax would apply to " profits above a 10% margin for the largest and most profitable multinational corporations ", that is. if the contribution margin of the product exceeds 10%. Basically if the profit margin exceeds 10% of turnover. Made the law, found the deception. Amazon, thanks to low-margin e-commerce activity, technically does not meet that limit, as the Guardian pointed out . Citing a bevy of experts who, the newspaper warned that Amazon could be excluded from the new tax regime if this rule was not changed.
Amazon is one of the largest companies in the world, with a market value of $ 1.6 trillion (£ 1.1 trillion) and a turnover of $ 386 billion in 2020. company zero in 2020 on sales revenue from across Europe of 44 billion euros (£ 38 billion), making Amazon a major target for policymakers fighting for changes to the global tax system.
However, its profit margin in 2020 was only 6.3%. He runs his own online retail business with very low profit margins, partly because he reinvests heavily and partly to gain market share.
Of course, with the Democrats in the driver's seat, it's hard to imagine Bernie Sanders or Elizabeth Warren allowing Amazon, a common target of their populist attacks, to escape the largest international corporate tax overhaul in 100 years. As Richard Murphy, a visiting professor of accounting at Sheffield University's school of management, told The Guardian, the 10% profit threshold was "inappropriate" due to the different business models for different companies. He added that current approaches to reporting profits in each country have been "easily fooled". "This could turn out to be a false hope unless they get the details right," he said.
Bloomberg said in the afternoon that Amazon will be subject to the new tax, even if this would mean a change in the general rules agreed so far and which, evidently, had been poorly studied, very poorly. They probably wrote them with the help of a lawyer … paid for by Amazon.
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The Amazon article ? It will not be affected by Biden's "global tax rate". They left her yet another loophole comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/amazon-non-sara-colpita-dallaliquota-globale-di-biden-le-hanno-lasciato-lennesima-scappatoia/ on Tue, 08 Jun 2021 08:26:45 +0000.