Rishi Sunak to lead global tax raid on Amazon and other online tech giants

CHANCELLOR Rishi Sunak will lead a global tax raid on soaring profits of Amazon and other online giants.

He is rallying the world’s finance ministers behind a plan to target tech companies who have cashed in on the pandemic.

In a major breakthrough, he has won US Treasury chief Janet Yellen’s support for talks about how a new “Amazon Tax” would work.

It has raised hopes a deal can be struck this summer to force multinational “click” firms to hand over more of their rich pickings.

The online sales blitz is one of 30 planned tax changes Mr Sunak will unveil this month.

He will make it his priority to win agreement from fellow finance chiefs when Britain hosts the G7 in Cornwall in June.

Mr Sunak told Trending In The News on Sunday: “One of my priorities in the G7 this year, which I’ve already started work on, is to try to get international agreement on a new way to tax these companies.

“I spend a lot of time talking to my finance minister colleagues around the world about this.”

Amazon’s sales in Britain leapt by 51 per cent last year to £19.5billion as lockdown-hit shoppers switched to home deliveries. But the company pays little corporation tax — just £14.5million in 2019.

Last year the Government slapped a two per cent digital sales tax on companies such as Amazon.

But an international treaty involving up to 37 states is required to target the profits of the multinationals. Global firms have sophisticated set-ups, often based offshore, which make it difficult to pin down their full revenue.

The last attempt to target US tech giants was derailed after fierce objections by former US President Donald Trump. But Joe Biden’s arrival at the White House has raised hopes that action can be agreed to create a level playing field for all retailers.

A Treasury source said: “The US has now signalled an openness to engage constructively in the debate and try to reach resolution which is really positive.

“The Chancellor has spoken to Janet Yellen specifically about this.”

It is believed there is huge public support to create a level playing field for high street stores burdened with huge rents and business rates and their lean-run online competitors.