Amazon discloses UK profits of £74m on sales of £3.35bn amid questions over tax avoidance

Andrew Cecil: Amazon’s director of EU public policy
Andrew Cecil: Amazon’s director of EU public policy

Amazon has revealed pre-tax profits of £74m on sales of £3.35bn in 2011 after disclosing its UK financial results for the first time to a Government select committee.

The online giant, which is currently at the centre of a storm about tax avoidance, has seen its results published two weeks after MPs probed Andrew Cecil, Amazon’s director of EU public policy, about its tax structure.

Amazon’s results were published on a Government website despite Cecil requesting the unaudited figures, which were submitted in response to questions from the Committee of Public Accounts, were treated confidentially "given the non-public nature of this information".

UK sales of £3.35bn in 2011 consisted of sales of £2.91bn related to orders from the amazon.co.uk website and £441m in revenue from subsidiaries including LoveFilm and other business outside the retailer’s main ecommerce site.

Amazon claims its outgoings included cost of sales of £2.69bn, operating expenses of £417m, "intercompany charges" of £151m for intellectual property licensed from Amazon Europe Holding Technologies, £12m of stock-based compensation and £7m of "other expenses".

Executives from Amazon, Starbucks and Google faced the grilling from MPs two weeks ago at the select committee with Cecil the subject of particularly humiliating dressing downs.

The committee requested answers from a "serious person" after Cecil struggled to answer its questions, according to a report from The Guardian.

MPs demanded Amazon supplied written answers to questions about its tax structure and how much the UK business generates after Cecil claimed he could not disclose how much of the €9.1bn sales made by the company’s European business came from the UK operation.

Cecil said at the original committee meeting that Amazon.co.uk paid £1.8m in corporation tax in the UK on more than a £200m turnover in 2011.

Discussion

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now

Latest

Lynx tells men not to leave love to fate
HBO captures awkwardness of watching sex scenes with parents
Primark to open first US stores with Boston chosen as flagship location
Marketing spend on the up but a reality check is needed before celebrating
Top 10 ads of the week: Jackpotjoy and BT Broadband fend off Kevin Bacon
Lidl beats Tesco to 10m Facebook fans
Center Parcs ad banned for encouraging parents to take kids out of school
Coca-Cola, Cadbury and Amazon named top brands for targeting youth market
Leaked document shows Nokia to be rebranded as Microsoft Mobile
Nike lays-off hardware staff in move that casts doubt on future of FuelBand
Greenpeace says save the bees or humans will die
What brands need to know about changes to VAT and online downloads in 2015
Jimmy Savile victims urged to claim compensation in new ad campaign
UKIP launches biggest  ad campaign and stirs up 'racist' accusations
Apple boss Tim Cook provides voiceover on ad touting firm's renewed green commitments
John Lewis walks consumers through its history to celebrate 150 years of business
Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up
Hottest virals: Cute puppies star in Pedigree ad, plus Idris Elba and Fruyo
Amnesty International burns candles to illuminate new hope
Toyota achieves the impossible by calming angry Roman drivers
Tom of Finland's 'homoerotic' drawings made into stamps
YouTube reveals user habits to appeal to 'older' marketers
Ex-M&S marketing chief Steven Sharp consulting at WPP
Wolff Olins reveals new CEO after Apple poaches Karl Heiselman
Glasgow offers £30,000 prize to best digital idea for 2014 Commonwealth Games
Google's revenues surge but shares drop as it grapples with transition to mobile
Facebook beats Twitter to most 'marketing friendly' social media site crown, says DMA
Fableists believe children like Finn should be outdoors enjoying life
Homebase, Baileys and Camelot join the line-up at Media360
MasterCard renews Rugby World Cup sponsorship to push cashless message