Online retailer Amazon has become the first tech multinational of its kind to abandon much-criticised corporate structures that allow it to avoid paying corporation tax in Britain.
For the last 11 years Amazon has booked its UK sales in Luxembourg. Last year these totalled 7.47 billion euros. It will now pay UK corporation tax on the profits made on those British sales.
The company says it now hopes to avoid George Osborne’s new Diverted Profits Tax of 25% which came into effect in April.
For years Amazon denied that its UK corporate structures were artificial or tax-motivated.