The “Silicon Six” tech giants in America have been accused of only paying $278 billion (£21.1 billion) in corporate income taxes over the last ten years.
Amazon, Meta, Alphabet, Netflix, Apple, and Microsoft have collectively made $1.1 trillion in revenue and 2.5 trillion in profit during the same period.
Despite this, they have only paid an average of 18.8% in national and federal taxes, compared to the US average of 29.7%, with Silicon Six allegedly involving tax avoidance in their business strategies.
Nonprofit organizations’ analysis showed that the average corporate income tax contribution for these companies fell to 16.1% over the past decade when excluding one-time US repatriation tax payments related to past tax avoidance.
The report also claimed that businesses inflated $820 billion in tax payments by including tax contingencies they didn’t anticipate paying during the same period.
Paul Monaghan, the CEO of FTF, stated, “Our analysis reveals that Silicon Six’s tax avoidance persists within their corporate structure. Their contributions exceed what other sectors like banks and energy pay in many regions globally.”
Monaghan highlighted “active tax practices” and companies’ significant influence on the economy, stressing that they spend millions lobbying the government.
The report points to the impact of tech moguls like Amazon’s Jeff Bezos, Apple’s Tim Cook, and Meta’s Mark Zuckerberg, emphasizing the influence of US tech companies.
Significant tax reductions for these companies reportedly played a pivotal role in discussions with the UK to secure lower tariffs on US exports.
Monaghan explained that much of Silicon Six’s international income benefits from lower tax rates due to tax credits for foreign intangible income. Overseas sales also face reduced income taxes due to lower profit margins and profits booked in low-tax jurisdictions.
Netflix had the lowest tax rate of 14.7% compared to its profit, with Microsoft at 20.4%. Amazon, despite a tax system criticized for profit shifting, had a corporate tax rate of 19.6%, surpassing Netflix, Meta (15.4%), and Apple (18.4%).
An Amazon spokesperson noted that UK revenues, costs, profits, and taxes are all reported and paid in the UK as required.
A Meta representative assured compliance with tax laws across all the countries they operate in, while a Netflix spokesperson stated adherence to relevant tax rules in every jurisdiction.
Microsoft, Alphabet, and Apple have been approached for comment.
Source: www.theguardian.com
