Amazon Not Paying Tax "Fair And Square" As HMV Falls Into Administration For Second Time
29 December 2018, 08:05 | Updated: 29 December 2018, 08:15
High street retailers going under is not just an economic issue it's a social issue too, Labour MP Wes Streeting says.
A number of high street retailers fell into administration in 2018, including Toys R Us, Maplin Electronics, Claire's, Poundworld, and House of Fraser.
But after an "extremely weak" Christmas, HMV announced that it too fell into administration for the second time in six years.
The entertainment retailer previously fell into administration in January 2013.
Speaking to Andrew Pierce, Wes Streeting, who sits on the Treasury Select Committee, pointed to the retailers' £15 million tax bill as a likely cause for the trouble.
Andrew Pierce said: "I was just looking at [Amazon's] tax bill. On sales of £2bn they paid corporation tax of £4.5m, which is almost half half what they paid in previous years when their sales were lower. They're not paying tax fair and square."
Mr Streeting replied: "I completely agree, Andrew and business rates alone represented an annual cost to HMV in excess of £15m.
"You can see how one high street retailer which has struggled so much seemingly that it's gone under, is paying far more than a global giant like Amazon.
"These are really big high street brands, big staples of the high street and it's not just the fact that consumers are losing out on choice, it's the fact that the heart is being ripped out of high streets which are the beating heart of communities across the country.
"It's a big economic issue, a big worry for people losing their jobs, but it's a social issue as well."