Facebook corporation tax for the whole of last year came to £4,327 . Chancellor of the Exchequer, George Osborne promises measures to rake in more taxes from big multinational firms by making changes to their accounting practices, and introducing new laws. An average UK worker pays £5,393 in taxes on a £26,500 income.
Sky News reports:
According to the company’s accounts, Facebook pushed itself into operating at a loss of £28.5m in Britain, following a payout of more than £35m to staff as part of a share bonus scheme.
The scheme meant Facebook’s 362 UK staff members took home an extra £97,790 each in 2014 – pushing their total pay packet to an average of £210,614.
The payouts, along with a profit base in Ireland, meant the firm was only liable for the small tax bill for the year, despite registering revenues of £105m.
Globally, Facebook made a profit of £1.9bn on revenues of £8.2bn in 2014.
A spokesperson for the company said: “We are compliant with UK tax law and in fact all countries where we have employees and offices. We continue to grow our business activities in the UK.”
The company pointed out it was taxed on their profit figures, not the amount of revenue they generate in the UK, and argued that all of its UK staff paid tax on their income – including the money they received from the share bonus scheme.
Facebook is the latest in a long line of multinational firms to be criticised over the size of their UK tax bills.
Google, Starbucks, Amazon and Vodafone have also come under fire in recent years.
In response, Chancellor George Osborne has pledged to crackdown on tax avoidance by large companies in the UK.
In March of this year, Mr Osborne announced he would be introducing a ‘diverted profits tax’, which would penalise companies that move their profits outside of the UK to countries with lower corporation tax rates in order to pay less to the Treasury.
Mr Osborne also said he would be changing the rules of corporation tax to prevent companies contriving losses.
Speaking at the time he said: “Let the message go out – this country’s tolerance for those who will not pay their fair share of taxes has come to an end.”
Latest posts by Edmondo Burr (see all)
- US, Russia Teetering On The Brink of War In Syria - June 20, 2017
- Seven Percent Of Americans Think Chocolate Milk Is From Cows - June 20, 2017
- Roswell Expert: Top Secret Documents Prove UFO Crash - June 19, 2017