Amazon's main UK division paid no corporation tax in 2022 and will likely pay nothing again this year.

According to a report by The Guardian, the Amazon UK Services avoided paying the tax after receiving tax credits on a part of its £1.6 billion spend on infrastructure, including robotic technology at its fulfilment centres.

Towards the end of last year, the UK branch reportedly received £7.7 million in tax credits.

Paul Monaghan, chief executive of the Fair Tax Foundation, said that Amazon UK Services is being handed enormous tax reliefs for investment that “almost certainly would have happened anyway” and that the company will likely pay nothing in corporation tax again next year and possibly in 2024 also.

The company saw sales across its UK business increase by £1 billion – upwards of four per cent – to £24 billion in 2023. During this time Amazon paid £781 million in total taxes, an increase of £133 million compared to 2021.

National Technology News has approached Amazon for comment.

Last year Amazon faced pressure from investors over tax transparency.

At the time, investors, which included Nordea, Royal London, and a number of large Europe-based and US pension funds, called for a new reporting standard on tax practices.

Founder and former chief executive of Amazon Jeff Bezos previously told ex-prime minister Boris Johnson that it's the government’s job make sure large businesses pay more tax. The billionaire told Johnson that he would not pay taxes "as an act of kindness".

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