Amazon: French tax authority says we owe $252 million in back taxes

By Shawn Knight
Nov 13, 2012
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  1. Amazon has been hit with a $252 million tax bill by French authorities. Officials say the debt comes as a result of back taxes, interest and penalties that have accrued with regards to what they call the allocation of income...

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  2. 9Nails

    9Nails TechSpot Paladin Posts: 903   +71

    I'm taxed by the State on the money I earn. It's double dipping to tax me again on the same money when I spend. Of course consumers will look elsewhere to spend their money. Simplifying the tax laws for state and local cities would fix such an issue, but the State and Local Government are too greedy.
  3. I don't see why amazon feels they are tax exempt. They sell, profit and market to the french market, they think they are special and get a free ride?
  4. PinothyJ

    PinothyJ TechSpot Enthusiast Posts: 429   +15

    No it is not. The money that YOU spend is money that SOMEONE ELSE is earning. This is no different if it is to a multinational company or that lovely Polynesian woman at the Farmer's Market.

    Do not be so ignorant: taxes are the reason you do not live in a third world country...
  5. wiyosaya

    wiyosaya TechSpot Enthusiast Posts: 169   +18

    Since France is going after Google in a similar manner, perhaps this is a case of a government wanting a bail-out.
  6. seefizzle

    seefizzle Newcomer, in training Posts: 98   +11

    The products aren't being made in France. The companies you buy the products from aren't based in France. There is no physical store that's ringing up an order or anything like that based anywhere on French soil. I don't see how they think they should be able to tax these transactions.

    And it's not like they're not collecting any taxes. These goods have to be shipped right? I'm sure they tax all forms of shippin; air, sea, ground...

    If the company isn't based in France, how can they charge taxes to that company?

    And what really bites me in the @ss, is that it's not an attack on the company itself, it's a tax on US. We're the ones buying the products. That cost will simply be shifted onto the consumer.

    I think that online purchases should not be taxed. We are taxed to the balls at every turn in our lives, leave our internet purchases alone.
  7. Tanstar

    Tanstar TechSpot Enthusiast Posts: 194   +18

    Because they are paying the local taxes where they've set up shop. The fact that French citizens are choosing to buy from them shouldn't mean that Amazon (not in France) should owe France money. The French government has no money so they are trying to dig it up anywhere they can. Not sure how France thinks they can enforce this. Are they going to invade Luxembourg so they can force Amazon to pay these phantom taxes?
  8. Tygerstrike

    Tygerstrike TechSpot Enthusiast Posts: 827   +93

    Actually wouldnt it be the purchaser who would owe the French Govt the taxes? As I understand it France has a 21% sales tax. If Amazon is paying thier fair share of taxes to the country that they work out of, then it falls on the French consumers to pay for that tax. Its not a very nice idea when you get down to it, but everyone in a civilized country has to pay SOME form of tax. Im guessing that once this goes through the legal process, Amazon and Google will not have to pay this tax due to already paying it in the country that thier business/shipping is going out of. Sounds like the French just want some quick cash and the internet sellers are a somewhat easy mark.
    Tanstar
    If I were a betting man I would guess that France would stop all shipments with a Google or Amazon label on it. It wouldnt be unheard of to see the French do it.
  9. Have no fear Amazon. Sooner or later the French will surrender!
  10. Tanstar

    Tanstar TechSpot Enthusiast Posts: 194   +18

    If the French people let their government do that then I guess they deserve what they get.


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