So the chancellor is considering an “Amazon tax”. You can see the full Sky news article here.
Now I know that some companies studiously avoid paying tax. Some even have tax departments. Staffed by tax professionals whose job role is lower the tax payment to the revenue.
This new potential tax rule however has more far reaching consequences. You see the United Kingdom has long been at the forefront of specialist business. The United Kingdom is home to a large number of small specialist online retailers. British online retail has already had to deal with the mess of VATMOSS, which is a bit of a nightmare. However this is a new spanner in the works of the small specialist business and what it does is attack the small and specialist online retail business under the “banner” of punishing larger businesses who pay what appears to be a lower rate of tax than their turnover would suggest is correct. Remember a small 1-3 person online retailer cannot afford to hire tax specialists in the way that the likes of Amazon can, neither can they afford the complex operations required to carry off the more elaborate operations in the marketplace such as those around intellectual property and image rights.
In short, this will penalise the small business and not hit the large business that it is designed to.