Philip Hammond says the United Kingdom could impose Amazon taxes to save the streets

The Chancellor (pictured in today's Sky News) said he supports moves to pursue technology giants and make them pay their fair share of taxes

Britain could impose an "Amazon tax" to the internet giants to help save the main streets of the United Kingdom, said Philip Hammond today.

The Internet giant ignited fury last week after its tax bill came out last year and paid just 1.7 million pounds sterling, despite the fact that profits went up and turnover reached almost £ 2 billion.

Meanwhile, the main streets of Britain suffered a bloodbath with some of the best-known brands in the country that have to close stores that cost thousands of jobs.

House of Fraser this morning was on the verge of collapse and was calling managers before it was dramatically rescued by Sports Direct boss Mike Ashley.

Shortly after news of the rescue became known, the Chancellor said he supports EU measures to persecute the technological giants and make them pay a fair share of the taxes.

The Brussels block earlier this year revealed plans to tax the revenues of internet firms such as Amazon, Google and Facebook instead of profits, so they have to contribute to the country where they do a lot of business.

But Hammond warned that if international efforts to revise the rules fail, then Britain will go on its own and impose its own measures.

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The Chancellor (pictured in today's Sky News) said he supports moves to pursue technology giants and make them pay their fair share of taxes

The Chancellor (pictured in today's Sky News) said he supports moves to pursue technology giants and make them pay their fair share of taxes

Amazon Chief Executive Jeff Bezos (photographed at the opening of Amazon Spheres in Seattle, Washington in January) has faced a barrage of criticism for not having his company pay enough taxes in the UK.

Amazon Chief Executive Jeff Bezos (photographed at the opening of Amazon Spheres in Seattle, Washington in January) has faced a barrage of criticism for not having his company pay enough taxes in the UK.

Amazon Chief Executive Jeff Bezos (photographed at the opening of Amazon Spheres in Seattle, Washington in January) has faced a barrage of criticism for not having his company pay enough taxes in the UK.

He told Sky News: "I want to make sure that the main street remains tough and that we also make sure that taxes are fair between companies that do business in a traditional way and those that do business online.

"That requires us to renegotiate international tax treaties because many of the big online businesses are international companies."

Sports Direct Chief Mike Ashley buys parts of House of Fraser in a rescue agreement

Billionaire Mike Ashley bought parts of House of Fraser in a dramatic rescue agreement this morning.

The well-known retailer announced this morning that it was calling managers, putting at risk 17,000 jobs.

But the head of Sports Direct rushed to buy parts of him.

It is not yet clear how many jobs will be saved with the agreement.

He is supposedly planning to buy it hours later.

Mr. Ashley said earlier that he dreamed of owning a department store in the United Kingdom.

House of Fraser was plunged into a crisis after C.banner, the Chinese owner of Hamleys, invested his investment in the troubled retail chain.

C.banner planned to buy a 51 percent stake in House of Fraser and plow £ 70 million into the troubled retailer, but canceled the measure last week.

He added: "The European Union has been talking about a tax on online platform companies based on the value generated."

The EU has drawn up plans to fundamentally change the way in which Internet giants are taxed to prevent them from crushing stores and paying only a fraction of public money.

According to the proposals, presented in March of this year, the Brussels block will tax the income of internet firms such as Amazon, Google and Facebook.

This is a radical change from the current model that considers that companies tax their profits when they reserve them, which allows companies to avoid paying large taxes by moving money through their offices in different countries.

The EU believes that, in general, the bloc's countries will raise an additional £ 5 trillion (the equivalent of £ 4.5bn).

In an interview with Five News, Hammond said that Britain is leading these international efforts, but if they fail, he is ready to go it alone.

He said: "Great Britain has led in this area and that is a continuous process to which we attach great importance, and we have also said that if we do not make enough progress in these international negotiations, we are willing to consider temporary fiscal measures in the short term. business online, until we get those changes to international agreements. & # 39;

It is not the first time Hammond hints at his strong endorsement of the change, which he also mentioned in his Spring statement earlier this year.

Hammond noted that the British are changing their buying habits and increasingly go to the web to collect what they want.

How is Amazon taxed now and how would this change with EU proposals?

Britain and several other major EU countries want to reform the way in which Internet giants pay taxes to pay their fair share.

Currently, companies like Amazon and Google pay taxes like any other company, on the amount of profits they deposit in each country.

But this means that they can do large amounts of business in the UK, but they slip away from paying taxes in the country by moving and baking their profits in another country where they operate with a lower tax threshold.

The EU has drawn up plans to fundamentally change the way in which Internet giants are taxed to prevent them from crushing stores and paying only a fraction of public money.

According to the proposals, presented in March of this year, the Brussels block will tax the income of internet firms such as Amazon, Google and Facebook.

The EU believes that, in general, the bloc's countries will raise an additional £ 5 trillion (the equivalent of £ 4.5bn).

He said: & # 39; More and more of us are buying online.

"In fact, Britain has the highest percentage of online purchases of any major developed economy.

That means the main street will change.

"We are very clear that you have to support the main street through this process of change.

"The nature of the offer on the street will change over time, there will be less retail, more leisure, bars, community facilities.

The details of Amazon's small British corporate tax bill were exposed last week, and revealed that it fell by £ 2.8 million last year even though the company saw pre-tax profits almost tripled.

The UK online retail giant's bill reached £ 4.6 million last year, compared to £ 7.4 million the previous year, show the accounts of Amazon UK Services Limited.

But the company only paid £ 1.7 million in taxes after deducting £ 2.9 million from that total.

That was despite pretax earnings that jumped to £ 72.4 million from £ 24.3 million in 2016, according to figures submitted to Companies House.

And its turnover increased by £ 500 million in a single year, from £ 1.46bn to £ 1.99bn last year, according to the accounts.

An Amazon spokesperson said: "We pay all taxes required in the United Kingdom and in all countries where we operate.

"Corporation tax is based on profits, not revenues, and our earnings have remained low since retail is a highly competitive, low-margin company, and our continued strong investment."

High Street decline: retailers struggling to stay afloat as online rivals lead their customers

Toys R Us: The toy chain entered administration on the last day of February after being unable to find an external buyer. In February, HMRC sought to recover £ 15 million in unpaid VAT and this eventually led the company to the administration.

Maplin: One of the largest electronics retailers in the United Kingdom collapsed in the administration on the same day as Toys R Us after talks with buyers failed to secure a sale. The business faced the fall in the pound after the Brexit vote, weak consumer confidence and the withdrawal of credit insurance.

Conviviality Retailing: The main beverage supplier and outside license owner of Wine Rack and Bargain Booze entered the administration at the beginning of April. The company had grown too fast by merger, there was a series of profit warnings and a £ 30 million tax bill for which Conviviality was forced to request additional funds from investors, who refused.

Warren Evans: Retailers of beds, mattresses and furniture in London and the southeast entered the administration a week after they went on sale. The retailer, known for its ethical stance, had been losing money for some time under the pressure of increasing costs and reducing customer spending.

Calvetron: The owner of the fashion brands Jacques Vert, Windsmoor, Dash and Eastex, which managed around 300 concessions in the UK in stores such as Debenhams and House of Fraser, went into administration in early May. The bosses said that inflation and the wage freeze had been a driving force behind the decline in spending.

Juice Corporation: The signature behind the fashion brand Joe Bloggs and the retailer that designed the wedding dress for Diana, Princess of Wales, collapsed in the administration in January. Although the group made profits, it did not manage to enter the fashion market.

Mothercare: The maternity and baby goods retailer has proposed closing 50 stores as part of a planned change for the company. He said the losses were driven by the costs of 17 store closures last year, onerous leases and a restructuring of the central office that resulted in 190 job cuts.

Carpetright: The conflicting flooring company is embarking on a store closure program and has begun raising £ 60 million in emergency funds as it pushes through a restructuring after announcing that it hoped to reserve an underlying year-round loss of between £ 7 million and £ 9 million.

Carluccio: The luxury deli chain unveiled a restructuring plan that will likely lead to 34 restaurant closures, citing a combination of a gradual decrease in consumer spending and increased competition, along with rising costs at hand of work, raw materials, rentals and business.

Other restaurants that have made voluntary agreements with the company so far this year include Byron, Prezzo and Jamie & # 39; s Italian.

New style: The clothing chain announced earlier this year that it would close 60 stores in the UK and cut 1,000 jobs as part of a financial restructuring.

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