MILLIONS of pounds paid out to "shameless" Amazon by the Scottish Government should be clawed back and any future payments must be frozen to punish the internet giant for its tax avoidance, the Greens have demanded.
The call came amid growing clamour for international corporations which shuffle their obligations around tax havens to be brought to book, with Google the latest in the sights of Westminster's Public Accounts Committee after a whistleblower said UK invoices had been routed through Ireland.
A senior Google executive was warned at one stage that he could face a charge of contempt for prevaricating or giving false evidence as political and public anger grows over multinationals avoiding tax.
Amazon's UK subsidiary paid £2.4 million in corporate taxes last year, despite sales of £4.3 billion, while coffee giant Starbucks has also gone to great lengths to minimise its tax bills.
"It is quite incredible that Scottish Ministers still think that writing big cheques to Amazon is a good use of public money," said Green MSP Alison Johnstone, commenting on the 0.1% corporate tax rate paid by the internet retailer.
"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."
The Scottish Greens said Amazon's payment of just £2.4m in corporation tax on UK sales of £4.3bn was unacceptable and Holyrood ministers should make that clear.
"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," said Ms Johnstone.
"We need far stricter rules on companies getting public money so 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."
The Greens claim some £10m is being paid to Amazon in relation to the huge warehouse it opened outside Dunfermline – £4.3m through regional selective assistance and £6.3m through the Scottish Property Support Scheme. The Government disputes these figures as some of the latter money was paid to a property developer, not to Amazon.
However, the Scottish Government has paid £3.5m to Amazon and is pledged to pay £3.2m more, dependent on job creation and training. A spokeswoman said: "It is currently the responsibility of the UK Government to ensure companies pay corporation tax and the Scottish Government expects all companies operating in Scotland to meet their tax obligations.
"Amazon currently provides more than 2000 jobs in its Scottish locations, making a significant contribution to local economies."
She added: "Attracting inward investment is a key part of the Scottish Government's economic strategy and can help us build sustainable economic growth for the benefit of people in Scotland."
At Westminster, Google's head of sales in Northern Europe, Matt Brittin, was skewered by the committee, denying UK sales in spite of having UK sales staff. "No money changes hands," he said, despite the fact that he employed sales staff in Britain.
But convener Margaret Hodge said: "It was quite clear from all that documentation that the entire trading process and sales process took place in the UK."
Google's sales in the UK are worth £3.2bn, but most are routed through Dublin. In 2011, it paid £6m in UK corporation tax.
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