Facebook faces flak for paying pittance in tax in UK despite millions in profit
Facebook has been slammed for not paying corporation tax in the UK despite making millions in profits.
London: Facebook has been slammed for not paying corporation tax in the UK despite making millions in profits.
The social media giant is estimated to have made a profit of 223 million pounds; however, accounts have revealed that the site`s British arm officially made a loss in the region in 2012, which indicates that the company`s tax bill was zero.
According to Mirror, figures indicate that Facebook`s turnover in the region was 34.6 million pounds, but experts claim it to be more than 200 million pounds.
Facebook is known to earn vast amount of revenue from advertising, but those figures do not show up on the UK accounts as the company`s sales there are filed legally through Ireland , where corporation tax is lower.
Chairman of the Commons Public Accounts Committee, Margaret Hodge said that it 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.
The report said that the accounts filed at Companies House show Facebook`s losses narrowed from nearly 14million pounds to just over 2.4million pounds.
Meanwhile, Facebook said that it pays all taxes required by UK law and complies with tax laws in all countries where it operates.