How do you become the world’s biggest social network? By dodging your tax dues, that’s how. That’s the accusation levelled at Facebook today, after it was revealed it had paid just £238,000 in corporation tax in the UK, despite pocketing a multi-million income.
Declaring a UK turnover of £20.4 million in 2011, the £238,000 tax paid last year seems a paltry sum, with Zuckerberg’s empire routing tax through its Irish office to avoid further charges.
But Facebook may have been due to pay even more still; independent researchers at Enders Analysis claim that Facebook may have in fact made £175 million in the UK last year, meaning that a mere 0.136 tax was paid on its UK earnings.
However, there’s little anyone can do to claim back owed taxes, as the Irish loophole is perfectly legal. Google too game the system, paying just £6 million in taxes on its estimated £395 million British income last year.
Via: The Independent