Facebook: still not paying tax

23 October 2014

Bitterwallet - Facebook Facebook didn't pay any UK corporation tax again in 2013 - the bloodclots. It's the second year in a row that the social media company have side-stepped the ol' tax.

Facebook reported a pre-tax loss of £11.6m in the UK last year, despite its US parent company reporting a net profit of $1.5bn (£900m).

The company's UK revenues rose from £34.6m to £49.8m, according to Facebook UK’s latest financial filing at Companies House published on Wednesday.

According to Facebook, its turnover is classed as “marketing and engineering services”, due to much of their ad revenue being sifted through Ireland because lower tax rates.

Facebook also made £371m in advertising revenue last year, which is a 67% rise from £222m in 2012. Facebook UK have however incurred a corporation tax charge of £3,169, as well as receiving a credit of £182,000.

Also, the UK end employs 172 staff, who were paid £40.8m last year, almost double of 2012's £21m. Most of this could be laid at the door of the £15.5m payment cost for share-based payments, as UK staff received 1.52m free Facebook shares worth $118m at their current share price of about $78.

So yes. All a bit uncool, especially given that Mark Zuckerberg is splashing out $100m on his own island. He'll probably set a bank up on it so Facebook can 'rest' funds there too.

TOPICS:   Social Media   Tax

3 comments

  • Dionaeamuscipula
    You might want to edit the story a bit. Evading taxes is illegal. Avoiding taxes, which is presumably what they are doing, is not illegal. DM
  • LD
    They are still c8nts whatever it is
  • Youstilldontunderstandtaxthen
    I see that on the face of it you still don't understand tax and in particular corporation tax. Corporation tax is not paid on revenue or turnover it is paid on profits. If they have higher costs than turnover they make a loss, as it appears in this case. Having said that not all costs that are allowable for accountancy purposes are an allowable deduction for corporation tax purposes. Unless you have access to all of the details of their income and costs then even looking at the accounts you cannot get a true understanding of if they are making an accurate report of their taxable position. Facebook will have paid tax; they will have paid NIC on the remuneration of their staff as well as VAT on any UK turnover - As such your headline is just plain inaccurate. You are treading on thin ice as the ownership of this site and related owned is conspicuous by its abscence. If I were to apply the same way of thinking that you are applying to Facebook then I would suggest this lack of openess is in order to obfuscate the ownership and income levels in order to evade and/or avoid tax in the UK...

What do you think?

Connect with Facebook, Twitter, or just enter your email to sign in and comment.

Your comment