Facebook paid only £238,000 in corporation tax on UK earnings of up to £175m
Source: The Independent (UK)
Facebook was accused last night of "disingenuous and immoral" tax avoidance after a new analysis of its UK business suggested the social networking giant paid just £238,000 in corporation tax in Britain last year.
Although industry experts estimate the company made £175m in revenue from its UK businesses last year, Facebook is able to avoid paying millions in corporation tax by diverting most of its sales via Ireland.
Annual accounts published yesterday at Companies House showed Facebook UK Limited declared turnover of £20.4m using the entirely legal scheme. Yet Enders Analysis, an independent research firm, has estimated Facebook's likely UK sales at £175m last year as the world's biggest social networking website has continued to attract advertisers.
Facebook is just one of a number of online giants that divert much of their UK profits through offices in Ireland or parts of Europe with lower corporation tax rates. One analysis earlier this year suggested that the five largest online companies – Apple, Amazon, Google, eBay and Facebook – managed to save as much as £650m in tax through such schemes. Amazon, which launched in the UK in 1998, is the UK's most popular retail website, with more visitors than Argos, Next and Tesco. Last year it had UK sales of £3.2bn in UK profits. But by registering its European headquarters in Luxemburg it has managed to avoid paying vast sums to the Treasury. Despite accountnig for one if four of all books sold in Britain, it paid no UK corporation tax.
Read more: http://www.independent.co.uk/news/business/news/facebook-the-antisocial-network-8206123.html
