Boy Is This A Galling Tax Dodge From Facebook: It Paid 0.3% Taxes On $1.34 Billion Profits

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http://www.businessinsider.com/surprise-facebook-avoids-its-european-taxes-2012-12


Facebook CFO David Ebersman

If you are as cynical as I am, I know you are not surprised that Facebook paid Irish taxes (via Tax Justice Network) of about $4.64 million on its entire non-US profits of $1.344 billion for 2011.* This 0.3% tax rate is a bit below the normal, already low, Irish corporate income tax of 12.5%.

As with Apple, Facebook funnels its foreign profits into its Irish subsidiary. As the Guardian article explains:
Facebook is structured so that companies buying advertisements on the website in the UK, or anywhere outside of the US, have to pay Facebook Ireland. As a result, Facebook manages to slash its taxes in other countries, paying, for example, $380,800 in British tax on estimated 2011 UK profits of $280 million, or a little over 0.1%. What is shocking is that Facebook paid so much Irish tax since it managed to convert its $1.3 billion gross profit into a net loss of $24 million.

Read more: http://feedproxy.google.com/~r/blogspot/moiCu/~3/rJkqHOFQ3Ro/surprise-facebook-avoids-its-european.html#ixzz2GLtkOBQJ