As Amazon grows stronger amid the Covid crisis and heat from governments rise over its tax record, it decides to redomicile its EU headquarters to Cyprus, effectively taking over the island, according to Saxo bank’s ‘outrageous’ predictions for 2021.
Cyprus welcomes Amazon and the tax revenue that will help it reduce its debt-to-GDP ratio of around 100 per cent “having chafed at the heavy-handed treatment by the EU during the 2010-12 EU sovereign debt crisis.”
With a GDP of some $24bn, the Cyprus economy equates to less than a quarter of Amazon’s non-US revenue, Saxo said.
According to the scenario, Amazon ‘helps’ Cyprus rewrite its tax code to mimic Ireland’s, but with even lower levels of corporate and other taxes.
“But EU regulators quickly get wise to what is going on and move against Amazon, forcing the company to change its practices, and forcing Cyprus and other EU countries to harmonise tax rules.”
The US and other countries also move against monopolies in 2021, as these companies are punished for their hubris.