At issue is an apparent discrepancy between the companies' global profits and their UK income taxes. Google, for instance, reported $4 billion in UK sales in 2011, but paid just $2.1 million (£1.3 million) in UK taxes, due to the fact that it funnels all non-US income through its Irish subsidiary. Amazon uses a similar strategy to keep its UK tax rate low, channeling European sales through a subsidiary based in Luxembourg. Last year, the retailer reported UK sales worth between $5.3 billion and $7.2 billion, on which it paid less than $1.6 million (£1 million) in taxes.
[Source: The Verge]