Sainsbury's chief executive calls for a 'level playing field' on tax

The sort of acrobatic tax manoeuvres Google, Amazon, Facebook, Apple and other multi-nationals are able to perform is most offensive to the companies that can't do the same but still have to compete with them.

Amazon launched its next-day delivery service on a limited range of groceries just before Christmas.

The online giant has moved into Sainsbury's space and this morning the supermarket giant's chief executive, Mike Coupe, politely (this is Sainsbury's after all) pointed out that the supermarket he runs is at a competitive disadvantage.

Mike Coupe told me the tax playing-field wasn't level - that Sainsbury's is the sixth largest taxpayer in the UK despite being the eightieth biggest company.

"We think we carry a disproportionate burden of the business tax take, " he said.

Sainsbury's and the other large supermarkets have complained about Business Rates (a tax on commercial property) before, but Mike Coupe's comments this morning go further.

He was clear that, to some extent, global multinationals are able to use the tax system in a way that gives them an advantage over their British rivals.

It's an unfairness he wants the government to do more to address.

The managing director of John Lewis, Andy Street, made a similar point in an interview with ITV News a few weeks ago, before HMRC agreed a tax settlement with Google.

The popularity of the internet is causing headaches for the taxman, it's also transformed the way we shop.

Mike Coupe is clear that the rise of the smart phone and the tablet computer has made the case for buying Argos irresistible.

The two sides have agreed a deal on deadline day, one which would create a non-food business that is larger than either John Lewis or Amazon, carrying 100,000 products and with annual sales of £6 billion.

I've examined the logic of a tie-up before, this morning was all about persuading shareholders that the numbers stack-up.

Argos may look like a company in gentle decline but Sainsbury's values it at around £1.1 billion - a roughly 60% premium to the stock market value before November's takeover approach was first reported.

Sainsbury's estimates savings of at least £120 million by 2019.

One third of these will come from overlapping "central and support functions", a large number (Sainsbury's still refuses to say how large) of Argos's existing 800 stores will also be relocated to the nearest Sainsbury's supermarket as leases expire.

The company insists the number of people the group employs will rise.

Sainsbury's will pay £440 million in cash for the business, Home Retail Group's shareholders will also receive a 12% stake in the combined group, if they back the deal.

A happy marriage? Coupe argues the companies are both better off together, the customer demographics are similar, the ranges are complimentary.

This deal would help push back against Amazon's incursion.

Shareholders have until 23rd February to makeup their minds.