Amazon tax avoidance debate surfaces yet again

The issue of the amount of tax that Amazon pays is a vexed one. Profits have risen in the UK, but Amazon UK are paying less tax to the Treasury - how can this happen?

Amazon will claim that they are complying with tax legislation - i.e. what they do is legal - but I've always asked myself the question, is it moral? And how does it differ from paying a tradesman in cash, for example.

I'm of the view that the latter is more justifiable - the trademan doesn't make elaborate arrangements to avoid paying tax and his high marginal propensity to consume is likely to see large chunks of expenditure, and that is going to be taxed.

There are also links to the ongoing debate about the state of the high street, and whether traditional retailers are competing on a level playing field.