Posts Tagged ‘corporation tax’

Let’s get this straight — I love America. It’s a great place; brash, confident, a can-do country. If a British business fails, the humiliation and disgrace is a permanent stain. If an American business fails, they pick themselves up, dust themselves down, and start all over again. And some of my best friends are Americans, as you’d expect me to say.

In fact it was my American friend Martha Moran who alerted me to this extraordinary story, an unprecedented combination (to my mind) of ignorance, hubris, licit connivance and venality.

Photographer Udi Tirosh posted this blog. It describes how the US Patent & Trademark Office has awarded a patent to Amazon for photographing things against a white background. That’s right — a patent on what we call cut-outs. The imagery that made Dorling Kindersley books famous around the world.

How can they get away with this? What effect will it have? The darker side of American business confidence also lies in this “let’s try it on” attitude. And all too often the American establishment colludes.

There’s much not to like about America. Deranged gun laws. The Albuquerque Police Department, who have shot dead 55 people since 2010. The US legal system. The $67 million claimed by a judge for a lost pair of trousers. Companies who attempt to copyright phrases in the English language. Bridgeman Art Library‘s case against Corel for nicking their images — Bridgeman was British, Corel won. The publishers of He’s So Fine sued George Harrison‘s Harrisongs for plagiarism with My Sweet Lord, which had one chord change in common. Harrison lost. The catastrophic Gulf oil spill caused by an American subsidiary of the British firm BP — BP was given a swingeing, humungous fine and ordered to pay billions of dollars of compensation, sometimes to people living a couple of hundred miles inland.

Every man, woman and child in the United Kingdom spends £70 a year with Amazon. It provides an amazing selection and a terrific service. Of course we buy from Amazon SARL in Luxembourg, not from Amazon.co.uk, which merely takes our order in the UK, locates the product in the UK and posts it out to us in the UK from within the UK.

In the past three years Amazon has generated sales of more than £7.6 billion in the UK, without paying any corporation tax on the profits from those sales. They paid just £4.2 million in tax in 2013, 0.1% of their UK revenues.

And you know why? Because their tax advisors are smarter than our taxmen and our government. Amazon is doing nothing wrong. We are missing out because of the incompetence of our legislators and HMRC.

And can Dorling Kindersley now expect Amazon to come knocking?

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