Facebook rakes in £223million but pays no tax
It has emerged that Facebook paid no corporation tax in the UK last year, despite the fact they made an estimated £223million. According to accounts, the British wing of the social network made a loss on these shores.
Figures show that FB's turnover here was £34.6million, though analysts reckon it was something more like £200million. These figures don't show up on the UK accounts because Facebook's sales in Britain are put through Irish books, where corporation tax is lower.
Of course, this is completely legal under the rules of HM Revenue & Customs, but that won't stop it sticking in the collective craw.
Margaret Hodge, chairman of the Commons Public Accounts Committee, said: "This is yet another example of what appears to be deliberate manipulation of accounts of economic activity to deprive the British taxpayer of a rightful tax contribution, according to the profits they make in the UK."
Facebook said: "We pay all taxes required by UK law and we comply with tax laws in all countries where we operate. We take our tax obligations seriously, and work closely with national tax authorities around the world to ensure compliance with local law."