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Non-Tech : Kirk's Market Thoughts
COHR 178.34-10.2%Dec 12 9:30 AM EST
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To: Jerome who wrote (2812)5/26/2015 9:55:44 AM
From: Kirk ©  Read Replies (1) of 26766
 
Bowing to regulatory pressure, Amazon (NASDAQ: AMZN) has begun booking European revenue in the countries in which sales were recorded, rather than funneling it through the low-tax haven of Luxembourg.

The change, which could have a big long-term effect on Amazon's EU income tax payments, went into effect on May 1.

The company's move could be a sign of things to come: Apple (NASDAQ: AAPL), Google ( GOOG, GOOGL), Microsoft (NASDAQ: MSFT), Starbucks (NASDAQ: SBUX), and a slew of other U.S. multinationals have also come under fire for their use of tax havens to cut their EU tax bills.
Amazon already collects VAT on European sales, but its use of Luxembourg is one reason why its European income tax payments have been modest - the company paid just £4.2M in U.K. taxes in 2013 on revenue of £4.3B. The other reason, of course, is that Amazon's international ops (thanks partly to Asian investments) have been in the red - Amazon reported a $297M International segment op. loss for 2014, compared with a $2.11B North American op. profit.
Amazon ALSO pays CA sales tax (8.75% in Santa Clara County and as high as 10% in some cities)

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