Press Room

30 Jun 2022

Miles Dean comments on Etsy’s UK corporation tax in Tax Journal

Partner and Head of International Tax, Miles Dean, comments on Etsy having paid £128,000 in UK corporation tax in 2020 due to the majority of its sales being booked via an Irish company, in Tax Journal.

Miles’ comments were published in Tax Journal, 28 June 2022, and can be found here.

“The misplaced outrage in response to this story is a result of a conflation of revenue and profit. Some are throwing out pejorative terms like “funnelled”, which implies that Etsy routed sales through an Irish company that has no substance, while the reality is that Etsy has no connection with the UK other than it being a market for them – being a US headquartered business it is free to choose where it establishes itself.

“Etsy does not pay UK corporation tax on the profits its Irish company generates because it does not have a taxable presence here through which it is trading. The sales are made by the Irish company on which it pays Irish corporation tax. In other words, Etsy is paying the right amount of tax in the right jurisdiction.”

Miles Dean

Miles is Head of International Tax at Andersen LLP. He advises privately held multinational companies, entrepreneurs and high net worth individuals on a wide range of cross border tax issues.

Email: Miles Dean