Facebook not keen on paying tax in UK
In the modern world, if you're poor and avoid putting money into the system, you're a scrounger... if you're rich and avoiding tax, you're seen as clever. The latest high profile company who are being clever-arseholes are Facebook who are paying so little tax that it's almost funny.
The Brit wing of Zuckerberg's company paid, on average, £275,000 to each of its staff in 2011. How much tax did it pay in total? The Treasury got a paltry £195,890 from Facebook. That's right. They paid less tax than the average Facebook wage. Keep in mind that the social network reported UK revenues of £20.4m, and you can see what the problem is. It seems the company is sending monies to Dublin instead, where the tax is lower.
Richard Murphy, of Tax Research UK, said: "The UK is being taken for a ride. Facebook is taking standard practice for these IT companies to a new high, or low, depending on how you look at it. The UK is giving the tax break and the Irish get benefit of all the tax on the sales."
The Guardian asked Facebook if they had set up headquarters in Dublin in a bid to lower their tax bill and they replied: "We have our international headquarters in Ireland that employs hundreds and a series of smaller local offices providing support services all over Europe. Dublin was selected as the best location to hire staff with the right skills to run a multilingual hi-tech operation serving the whole of Europe."
Facebook have even admitted that their published figures aren't strictly correct, saying in a statement: "The information does not necessarily present a full account of overall global financial performance so it would be a mistake to draw any conclusions from these filings."