A taxing question: is this Amazon's new HQ?

 
Amazon Towers: the company’s new 12-floor office block at Smithfield Market
31 May 2013

Amazon today unveiled a new multimillion-pound central London office.

The online retailer is moving to a 12-floor building near Smithfield Market that will eventually provide a base for more than 1,600 staff. But it was careful not to describe the 210,000sq ft glass and steel block as its “head office” as controversy continues over its ability to avoid paying vast sums in corporation tax by claiming to be based outside the UK in Luxembourg.

The company refused to say whether it would now formally be based in the UK for tax purposes

The firm, which MPs criticised as “evasive” and which has paid only £5 million of tax on UK turnover of £527 million in the past two years, has signed a deal to occupy the building in Holborn Viaduct.

A spokesman refused to disclose details except to say the deal was worth “millions of pounds”. The building is due to be completed in September and “several hundred” staff are expected to move in by the end of the year.

Christopher North, managing director of Amazon.co.uk, said: “This new office location will provide the space we require for hundreds of our existing employees as well as many more that we will hire in the future. Amazon has over 6,000 permanent employees in the UK and we will continue to create thousands of jobs in the coming years across the UK. We look forward to drawing from the capital’s strong pool of talent as we continue to innovate and enhance our service.”

Boris Johnson, who has defended firms such as Amazon, Google and Starbucks over the “difficult” issue of corporation tax, said: “I am delighted that Amazon is once again choosing London for its ambitious expansion plans.”

The Mayor, who opened Amazon’s development centre near Old Street last year, added: “ This is excellent news for London’s continued growth as a leading global hub for tech talent.”

The building, which offers staff panoramic views of St Paul’s Cathedral, was designed by architects KPF and built by AXA Real Estate.

Earlier this month it was reported that MPs on the Commons public accounts committee were ready to recall Amazon executives for further questioning on the company’s tax affairs.

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