The Rt Hon Philip Hammond MP

Chancellor of the Exchequer

HM Treasury

4 October 2018

Dear Philip,

As someone who has actively campaigned for tax justice since entering Parliament in 2010, including the introduction of my Tax and Financial Transparency Bill in 2011, I was deeply concerned by the recent revelation that, last year, Amazon UK’s annual corporation tax bill was just £4.6m – down from £7.4m the previous year, even though the company’s profits were up from £24m to £72m. In short, Amazon uses public infrastructure and services in the course of making substantial profits, but does not contribute to such infrastructure and services by paying a proper and fair share of tax. This cannot go on.

I therefore welcome the statement in your speech to the Conservative Party Conference earlier this week that “the global internet giants must contribute fairly to funding our public services”. And, while I agree that “the best way to tax international companies is through international agreements” such as the EU’s proposed Common Consolidated Corporate Tax Base, I also agree with your conclusion that “the time for talking is coming to an end and the stalling has to stop. If we cannot reach agreement the UK will go it alone with a ‘Digital Services Tax’ of its own.”

Hugely profitable online retail giants such as Amazon that benefit from our roads, education system and the NHS must make a fair contribution, and I hope very much that you will use your forthcoming Budget to announce firm details and a timetable for a Digital Services Tax.

Yours sincerely,