Online retailer Amazon continues to legally evade paying tax to the UK and European Governments (i.e. people) by trading through an offshore operation in Jersey.
With President Obama and the G20 leaders determined to crack down on tax havens, this blatant avoidance of sales tax seems defiant to say the least. Perhaps Amazon can put forward a convincing argument for selling to the UK mainland from a small island 100 miles away from the closest customers with a tiny internal market and the associated shipping costs?
Amazon is exploiting a legal loophole called the 'de minimis' agreement, under which goods falling below an £18 threshold can be supplied without charging VAT.
This kind of operation will not help the Channel Islands' reputation one iota as they come under the increased scrutiny of governments around the world. Whilst any job losses associated with closure of this business will be much regretted, they hardly compare with those that will be lost in the finance sector if the islands fail to convince the world they are not a centre for tax avoidance.
Bob
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