16 May 2013
Green MSPs are urging the Scottish Government to recall its grant funding of Amazon UK following news of its 0.1% tax rate in the last financial year despite UK sales of £4.3 billion.
A briefing provided to MSPs visiting Amazon’s Dunfermline centre earlier this year showed that the Scottish Government has offered up to £10.6m to the company in funding, far more than the £2.4m paid by the company in corporation tax in 2012/13.*
The Greens want to see the public grants and procurement system reformed so that companies’ tax record can be taken into account before public funds are given out.**
Alison Johnstone, Scottish Green MSP said:
“Amazon clearly have absolutely no intention of playing fair when paying tax but are happy to take millions from the public purse in Scotland. The latest revelations should prompt the Scottish Government to urgently end its handouts and demand a complete refund.
“It is quite incredible that Scottish Ministers still think that writing big cheques to Amazon is a good use of public money. That lost tax income and grant funding could completely transform the small business sector, providing secure jobs to more people. Amazon are shameless but the Scottish Government must take a stand.
“We need far stricter rules on companies getting public money so that their record on tax or use of zero-hours contracts can be taken into account. Public money should be used to support the high standards we want more of in Scotland.”
*A briefing to MSPs on the Economy committee by Scottish Enterprise in February contained the following figures: £4.3m offered in RSA and training awards, £6.3m made available through SE Scottish Property Support Scheme for the Dunfermline building
**Alison Johnstone questioned John Swinney on Amazon’s tax avoidance and the issue of zero-hours contracts at the Economy committee. Page 8 of this Official Report:





