Numerous governments worldwide rely heavily on Amazon Web Services (AWS).
Despite increased political scrutiny worldwide, Amazon.com, Inc. (AMZN) has won several lucrative government contracts worldwide, primarily for its Amazon Web Services (AWS) cloud computing subsidiary.
According to a recent assessment, the value of these long-term deals is in the hundreds of billions of dollars.
One of the many complaints against the digital giant Amazon in the United Kingdom is that it is adept at dodging taxes there.
In response to Amazon’s criticism in the United Kingdom, the company said their numbers “are inaccurate and do not encompass the majority of our activity.”
“Comparing a contract value over many years to an inaccurate corporation tax amount for a single year is tremendously deceptive,” the firm continues.
Some Government Contracts Awarded to AWS:
As of May 24th, 2022, the exchange rate between the British pound and the US dollar was around $531 million.
The entire value of contracts AWS received from the United Kingdom government in 2020 and 2021.
The Ministry of Defense, MI6, and MI5 use Amazon Web Services (AWS) to store classified documents, according to a report from the Home Office, HMRC, the Ministry of Defense, and MI6.
According to a United Kingdom government representative, Amazon Web Services is one of the government’s numerous cloud service providers: “Our procurement choices are always focused on achieving value for taxpayers and the highest quality services.” AWS users in the United Kingdom are reportedly “enjoying cost reductions of up to 60%,” as claimed by Amazon.
Amazon has landed a $10 billion deal with the National Security Agency in the United States (NSA).
According to the same article, AWS has landed contracts.
Australia for a total of AUD 626 million, which converts to around USD 444 million at today’s currency rate.
Wagering War on the Numbers:
The study that accuses Amazon of tax dodging in the UK shows that in 2020, the company paid just 22.3 million GBP (about $27.8 million) to the UK government.
However, Amazon argues that its total tax payment in 2020 was 1.55 billion British pounds or around $1.93 billion in today’s currency. When figuring out your taxes, Amazon considers both federal and state levies.
National insurance payments from employers, company rates, stamp duty, and corporate tax are all examples of direct taxes.
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