Prime Minister Boris Johnson said he told Amazon founder Jeff Bezos that the e-commerce giant will pay its share of taxes.
Johnson held a meeting with Bezos and his gal pal Lauren Sanchez on Monday at the sidelines of the United Nations general assembly, which started Tuesday.
What I did say to him was that we in the UK feel very strongly that the Internet giants need to be making their fair share of contribution in tax, Johnson told ITN on Tuesday of the meeting.
When you sell many billions of goods in the UK then you have to expect taxation fairly in the UK, added he.
We need a digital sales tax, a true way to make sure that we re equally taxing these enormous global businesses – just as we tax high street shops. Asked by Channel 5 how Johnson responded, Johnson said: He s a capitalist and he made the very important point that this is a job for governments. And tax isn't something that he is going to pay as an ex gratia act of kindness. It s up to governments to come up with the right framework.
Amazon, made Bezos — its former CEO and current chairman — the world's richest man, faces scrutiny over whether it pays enough tax in what its booming business is.
Even as Amazon's UK revenue fell by more than 50 percent in 2020 to nearly $28.2 billion, its UK division paid just $25 million in direct taxes, The Guardian reported earlier this month.
When asked whether Bezos accepted that Amazon isn t paying enough tax in the UK, Johnson said: This is a guy who s making he has to operate within the commercial framework, within the laws he finds, that s what he does.
We re trying to make sure we change so that we are fair to the taxpayer, fair to other businesses in the high street and elsewhere, Johnson said Tuesday.
Policy makers around the world have increasingly embraced the idea of a global digital tax meant to focus on multinational Big Tech firms like Amazon with the goal of making sure companies pay taxes based on where they actually operate.
In June Finance Ministers agreed on a framework deal for the tax, with details expected to be finalized in time for the Group of 20 meeting next month.
On top of taxes, Bezos also broached Bezos recent pledge of $1 billion in conservation efforts worldwide.
The pledge was announced Monday through the Bezos Earth Fund, that Bezos began in 2020 to dole out his $10 billion commitment to address climate change.
This week s $1 billion pledge will focus on efforts in Central Africa s Congo Basin, the Tropical Pacific Ocean and the Congo s Congo region, all of which are key areas for biodiversity, the announcement said.
The Amazon should come to the rescue of Bezos, joked Johnson at his meeting with Johnson.
Bezos replied, In part we are going to start with some rain sanctuaries for the Andes basin, we are going to start with some rain sanctuaries in Congo basin.