Alongside fellow U.S conglomerates Amazon and Google, the world's leading social networking site Facebook has now been revealed to have have paid zero corporation tax in Britain for 2012, according to their latest accounts.
With 33 million UK users and a £223m share of the British digital advertising market, Facebook actually paid £238,000 more in tax in 2011 - required by law to pay nothing in 2012.
By processing sales through Ireland, the American tech giants routinely avoid UK tax implications. Since opening a London office in 2007, Facebook has recorded over £500m in sales but paid just £1m in corporation tax. They currently employ 119 staff.
"This is yet another example of what appears to be deliberate
manipulation of accounts of economic activity to deprive the British
taxpayer of a rightful tax contribution, according to the profits they
make in the UK," said Commons public accounts committee chair
Margaret Hodge.
"I am getting fed up of this constant stream of stories
and little sign of a challenge from HMRC and a strange silence from
government."
A Facebook spokesman said: "Facebook pays all taxes required by UK law and we comply with tax laws in all countries where we operate and have employees and offices. We take our tax obligations seriously, and work closely with national tax authorities around the world to ensure compliance with local law."
Tuesday, October 08, 2013
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