Report: Amazon, eBay Allegedly Dodging Taxes In UK, Government Is Now 'Looking At All Possible Actions'

Top tax officials in the UK are taking a close look at Amazon.com, Inc. AMZN and eBay Inc EBAY's business practices in the country, according to The Guardian

An investigation found hundreds of high-value items, such as Apple watches, iPads, among others were being sold on Amazon's UK website without VAT (value added taxes) being charged to the consumer.

The allegations are also reaching high levels of U.K. government. Lord Lucas, a member of the U.K. Parliament claimed that both Amazon and eBay are "collaborating with hundreds of overseas retailers to defraud the taxman of millions of pounds every day."

The Guardian went on to point out that Amazon and eBay insist they have no obligation to enforce comply with local tax obligations. The company's comments likely sparked Lord Ashton, a spokesperson for the U.K. Treasury to state that the government is now "looking at all possible options," including "whether online platforms should be made liable for VAT."

Despite the report, shares of eBay were trading higher by 1.41 percent at $27.98 heading into the final hour of Tuesday's session. Shares of Amazon were lower by 0.23 percent at $663.00.