Amazon, Meta, Alphabet, Netflix, Apple, and Microsoft have been accused of tax fraud. A new report by the UK-based not-for-profit Fair Tax Foundation (FTF) has accused the Silicon Six major tech companies of avoiding nearly $278 billion in U.S. corporate income taxes over the past 10 years.
The analysis, released today, alleges that these firms paid an average corporate tax rate of 18.8%, significantly below the U.S. average of 29.7% for companies with comparable profits. If one-off repatriation tax payments tied to historical tax avoidance are excluded, the report claims the effective tax rate drops to just 16.1%.
The companies, collectively dubbed the “Silicon Six”, generated a staggering $11 trillion in revenue and $2.5 trillion in profits from 2014 to 2023, according to the FTF. Despite these massive earnings, the report argues that the companies have “hardwired” tax avoidance into their corporate structures, employing strategies such as booking profits in low-tax jurisdictions and leveraging tax breaks like the U.S. foreign-derived intangible income (FDII) deduction.
The FTF also alleges that the companies inflated their reported tax payments by $82 billion over the decade by including contingencies for taxes they did not expect to pay.
Paul Monaghan, FTF’s chief executive, criticised the tech giants for their “aggressive tax practices” and highlighted their significant political influence.
“The Silicon Six’s corporate income tax contributions are, in percentage terms, way below what sectors such as banking and energy are paying in many parts of the world,” Monaghan said.
He pointed to their substantial lobbying efforts, noting that these firms spend millions annually to shape tax policies in their favour. The report’s release coincides with heightened scrutiny of Big Tech’s influence, underscored by the attendance of Amazon’s Jeff Bezos, Apple’s Tim Cook, and Meta’s Mark Zuckerberg at President Donald Trump’s second inauguration in January 2025.
Among the six, Netflix recorded the lowest effective tax rate at 14.7%, followed by Meta at 15.4%. Apple paid 18.4%, Amazon 19.6%, Alphabet 20.1%, and Microsoft 20.4%. The FTF singled out Amazon for the “worst tax conduct”, citing practices like booking a significant portion of its U.K. income in low-tax Luxembourg. The report claims such profit-shifting tactics are common across the group, allowing them to minimise tax liabilities globally.
Three out of the Silicon Six deny wrongdoing
Amazon strongly disputed the FTF’s findings. A company spokesperson emphasised that Amazon complies with all tax laws and invests heavily in job creation and infrastructure.
“Since 2010, we have invested more than $1.2 trillion in the U.S. and over €250 billion in Europe,” the spokesperson said. “Coupled with low margins, this investment will naturally result in a lower cash tax rate.”
They added that Amazon’s U.K. revenues, expenses, profits, and taxes are fully reported to HM Revenue and Customs.
Meta and Netflix also defended their practices. A Meta spokesperson stated, “We follow international and local tax rules, ensuring that we pay all taxes required in each of the countries where we operate.”
Similarly, Netflix said it “complies with the relevant tax rules and regulations in every country in which we operate”.
Microsoft, Alphabet, and Apple did not respond to requests for comment by the FTF.
The report has sparked broader debate about corporate tax fairness, particularly as governments grapple with budget deficits and public demand for equitable tax systems.
The FTF’s findings align with previous criticisms of Big Tech’s tax practices. For instance, a 2021 report by the Institute on Taxation and Economic Policy found that many U.S. corporations paid effective tax rates far below the statutory 21% federal corporate rate, often due to loopholes and international tax strategies.
The Organisation for Economic Co-operation and Development (OECD) has also pushed for global minimum tax reforms to curb profit shifting, with a 15% minimum corporate tax rate for large multinationals set to take effect in many countries by 2025.
However, defenders of the Silicon Six argue that their tax practices are legal and reflect the complexities of global business. Tax experts note that U.S. tax incentives, like the FDII deduction, are designed to encourage domestic investment, while low-tax jurisdictions compete to attract corporate profits.
“These companies are playing by the rules governments have set,” said Jane Ellis, a tax policy analyst at the Centre for Global Tax Studies. “If policymakers want higher tax contributions, they need to reform the system,” he added.
The FTF report also raises questions about the Silicon Six’s influence on U.S. trade and tax policy. It equally suggests that tax cuts for tech giants might have been discussed in negotiations to lower tariffs on U.K. exports to the U.S., highlighting the companies’ economic clout.
See also: Meta could be forced to sell Instagram and WhatsApp as anti-trust case begins today
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