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Facebook paid under £5000 in UK corporation tax in 2014

Oct 12

Written by:
12/10/2015 10:20  RssIcon

Company records overall loss in UK of £28.5m

A Guardian investigation has revealed that Facebook paid only £4,327 in
UK corporation tax last year after staff at their UK arm took home an average of more than £210,000 in pay and bonuses.

 

 

According to an article published yesterday, "Facebook made an accounting loss of £28.5m in Britain in 2014, after paying out more than £35m to its 362 staff in a share bonus scheme. Operating at a loss meant that Facebook was able to pay less than £5,000 in corporation tax to HM Revenue for the year."

However accounts show that last year, Facebook made a profit on its worldwide operations of $2.9bn (£1.9bn), on revenue of $12.5bn while UK revenues were £105m.


John Christensen, the director of campaign group the Tax Justice Network, told the Guardian: “it’s very likely they’re using all the usual techniques to shift profits around.”


A spokesperson for Facebook said: “We are compliant with UK tax law, and in fact in all countries where we have operations and offices. We continue to grow our business activities in the UK”. She added that all the firm’s employees paid UK income tax on their payouts.


The company also scores a worst rating on the Ethical Consumer database for  the likely use of tax avoidance strategies as the company had several high-risk company types, including the parent company.


According to a report published by OpenCorporates in September 2013 Facebook Inc had several subsidiaries based in countries and jurisdictions which Ethical Consumer considered to be tax havens. These included:


Facebook Cayman Holdings Unlimited I (Cayman Island)
Facebook Cayman Holdings Unlimited II (Cayman Island)
Facebook Cayman Holdings Unlimited III (Cayman Island)
Facebook Cayman Holdings Unlimited IV (Cayman Island)

Facebook Inc is also registered in Delaware, USA, a jurisdiction which Ethical Consumer considers to be a tax haven. 

 


 

 

Discover our company tax avoidance ratings which highlight which companies are likely to be involved in tax avoidance strategies. Read now >

 

This story has been added to our corporate database. The database powers all our live product guides, giving the score for each company on our rankings tables. Find out more about how we rate companies.

 

 

 

 


 

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