Linkedin ......a great help for tax authorities

That was interesting news this week. In an attempt to find proof that Amazon UK undertakes more activities in the UK than they claim, HMRC  (Her Majesty's Revenue and Customs)  checked out Linkedin profiles of Amazon UK employees. About 140 profiles were checked. And we all know why a lot of people have Linkedin profiles, they want to be attractive to headhunters and new employers. So what do they do...they pimp up their profile. This can now hurt Amazon UK. Amazon UK employed more than 4000 employees in the UK who all performed auxiliairy activities, according to Amazon. The Linkedin profiles told a different story, a lot of Amazon UK employees did contribute significantly to the UK profits of Amazon. Over the last six years Amazon reported in total $23 billion of sales in the UK. They paid in total $9 million of Corporate Income Tax to the Inland Revenue. Is that paying your fair share? 

HMRC also checked out the Corporate website of Amazon and looked at job adverts. It might be a good idea to have your tax department check all these pieces of information to see if there are no conflicts with the tax set- up. Every bit of information which is available on the net (don't forget Facebook, Twitter, Blogspot) can and will be checked by tax authorities. And why not? Free and accessible information up for grabs. 

Companies need to be aware that tax authorities know everything. We all know that former employees, certainly the ones who have been fired at some point, are good sources of information for tax authorities. An company cannot prevent employees stealing information and selling this to tax authorities.  Social media can be an ally of tax authorities. An company cannot prevent employees using Linkedin, Facebook or Twitter. Companies need to be aware of that fact and check what is happening. The Amazon UK case proves this might be the smart thing to do.