Doesn’t matter how many new fulfillment centers Amazon opens up, they can’t avoid paying the tax man.
In November of 2012, Amazon received a notice of unpaid international taxes in the amount of $234 million from 2005-2006. While unpaid taxes is nothing new to Amazon, the online marketplace believes the IRS is overestimating the balance and will contend it in court.
The Internal Tax Revenue says tax payments made from Amazon’s units in Europe to the parent US Company were too low and the agency is also contesting tax deductions Amazon claimed on its net operating losses. According to the court filing, Amazon is arguing the IRS is overestimating the value of Amazon’s “tangible property,” which includes computer software, trademarks and marketing assets. Amazon also faces $1.5 billion in additional federal taxes over a seven-year period beginning in 2005.