Facebook - Like Us?

[Gromit]

Facebook paid just £4,327 in UK taxes last year. A bit of an improvement on the year before when it paid nothing.

Facebook Inc, the parent company of the UK operations, reported at the beginning of the year that it had revenues of $12.5 billion in 2014, up 58 per cent from the year before. That translated into profits of $2.94 billion.

It paid its 362 UK-based employees an average of £210,000 in pay and bonuses. It gave its London staff Facebook shares worth £35.4 million.

http://www.independent.co.uk/life-style/gadgets-and-tech/news/facebook-paid-only-4327-in-uk-tax-last-year-less-than-the-average-worker-a6689731.html

We've seen it before with Amazon and Starbucks. Is this acceptable and good business? Or are they taking the pist?

[Svejk]

Pist. Can't blame them though. They have a duty to minimise their tax bill. Or perhaps that should be, they don't have a duty to increase it.
I believe this government is trying to do something about this. Unlike previous governments.

[1ozzy]

//Facebook - Like Us?//

NO, but it's no different over here. They are doing what every internet company does, along with a lot of "off shore" companies.

Until a government cracks down and changes tax laws they will keep on keeping on.

Do you like paying tax? I don't and do my best to minimise my tax bill every year.

In saying that I would be a tad happier paying tax if it wasn't wasted on non essential items and grants to keep minorities happy.

[EDDIE51]

''They have a duty to minimise their tax bill''
So does that apply to us as well? do we have a duty to minimise our tax bills by working cash in hand, claiming we are self employed or pretending we do not really live in the UK and falsely claiming to be a 'non dom' (like the owner of the Daily Mail Viscount Rothermere) ?

[mikey4444]

Its just not possible that such a miniscule amount of tax be paid on such a huge turnover.

Companies like this should be pursued vigorously by the British tax authorities. .....in exactly the same way as ordinary people like us are pursued !

[Orderlimit]

Is this EU law ?

[1ozzy]

Problem is Mikey there are laws in place to capture the little fellow.
But not the big internet/multinational companies.

Governments need to change taxation laws to keep up with the world.

[mikey4444]

1ozzy...agreed, so perhaps the Government of the day will change the laws, that allow this to go on.....its fraud by another name.

[1ozzy]

It most certainly is Mikey.
But it's up to the government of the day to enact laws to put an end to the blatant rip off!

[mikey4444]

Well....we keep being told that we are all in this together...I guess that doesn't include wealthy foreign companies though !

And to answer Gromit's last question....yes they are are taking the piste !

[andy-hughes]

Tax collection is the government's responsibility - tax reduction is any company's responsibility.

If the one allows the other, then it is clear to see where the fault lies.

[ToraToraTora]

they are taking the pish because they can. It is any outfits job to avoid tax, it is any governments job to stop them. Trouble is it's men v boys out there.

[tamborine]

Why should FB pay anything, its not an advertising site like errrrr TheAnswerbank?

[ToraToraTora]

well tambo, they made 3 billion in profit do you think they should be tax exempt?

[tamborine]

Its an american company as are so many internet companies, that are probably taxed in USA. If they were retailing/income adverts here, tax would be due. FB dont fit the category.

[sandyRoe]

Bare faced cheek!

[tamborine]

Am sure they pay tax thru PAYE for UK staff.

[Hypognosis]

@Tambo

i) Facebook is a heaving pile of adverts, with a narrow strip of content, down the middle. If AB is as old as claimed then it's a rip-off of AB, except with pictures and videos and games and.... b***er!

ii) PAYE is what people pay, on earnings. There is no employer chip-in involved.
Did you mean employer-side NI conts?

[youngmafbog]

Well they have not committed any crime as far as I can see.

The law needs to be changed but that in itself could have consequences in this Global day and age.

Having a huge turnover does not necessarily translate into a huge profit Mickey.

[andy-hughes]

Hypognosis - //If AB is as old as claimed then it's a rip-off of AB, except with pictures and videos and games and.... b***er! //

The AnswerBank - proudly showing the rest of the world how it's done since 2000!!!

[Hypognosis]

@andy-hughes

Oh, bulletin boards and sig forums go back to the 90s. Usenet and newsgroups even further than that. This format is more user-friendly though.

In-game purchases, à la Facebook: are they a service or goods? Should they attract VAT?