Amazon.com, Inc. (AMZN), eBay Inc (EBAY) Accused of Ignoring Tax Fraud

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Amazon.com, Inc. (NASDAQ:AMZN) and eBay Inc (NASDAQ:EBAY) are facing accusations that they are ignoring tax fraud in the U.K.

Amazon.com, Inc. (AMZN), eBay Inc (EBAY) Accused of Ignoring Tax Fraud

Members of Parliament in the U.K. claim that Amazon.com, Inc. and eBay Inc are ignoring cases in which sellers through their websites are avoiding value-added-tax (VAT). The Members of Parliment claim that AMZN and EBAY are benefiting from these sellers avoiding taxes.

According to Members of Parliament in the U.K., there are roughly 23,000 sellers outside of the country that are avoiding VAT by selling on Amazon.com, Inc. and eBay Inc. The two companies argue that they have been working to overcome these issues.

While the Members of Parliament agree that Amazon.com, Inc. and eBay Inc are attempting to crack down on cases of sellers avoiding VAT, it might not be enough. The sellers avoiding VAT via the online retailers are hurting companies inside the UK that are paying VAT, reports The Register.

Amazon.com, Inc. and eBay Inc argue that it is up to the sellers to handle paying VAT. However, Her Majesty’s Revenue and Customs (HMRC) says that legal changes should be made so that online retailers are responsible for some VAT that sellers avoid.

The HMRC didn’t get off scot-free, either. The Members of Parliament also criticized the agency for not properly enforcing laws concerning VAT. Some Members of Parliament took part in exercises to identify those avoiding VAT. They claim that the sellers are easy enough to find and that more needs to be done to stop them, The Guardian notes.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2017/09/amazon-com-inc-ebay-inc-amzn-ebay-vat/.

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