Debate House Prices


In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Facebook pays just £4,327 corporation tax in 2014.

135678

Comments

  • When was the last time any of us paid any money to Facebook?
  • Mistermeaner
    Mistermeaner Posts: 2,989 Forumite
    Tenth Anniversary 1,000 Posts
    edited 12 October 2015 at 6:50PM
    Whoops. .
    Left is never right but I always am.
  • Mistermeaner
    Mistermeaner Posts: 2,989 Forumite
    Tenth Anniversary 1,000 Posts
    If the behaviour of these so called 'tax Dodgers' ala amazon Starbucks etc is so abhorrent why don't we as consumers drive them out business in the UK by not giving them our money?

    Clearly for all the righteous indignation the vast majority of people clearly don't care.
    Left is never right but I always am.
  • kinger101
    kinger101 Posts: 6,520 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    can someone detail out, what the problem in this case is, and how it should be made better?

    https://en.wikipedia.org/wiki/Double_Irish_arrangement

    https://en.wikipedia.org/wiki/Corporate_tax_in_the_Netherlands

    This type of nonsense means Facebook is paying hardly any corporation tax on it's worldwide operations. Personally, I think the EU should focus on the harmonization of corporation tax law as a priority. Too many of its member states are tax havens, or conduits to them at least.
    "Real knowledge is to know the extent of one's ignorance" - Confucius
  • kinger101
    kinger101 Posts: 6,520 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    If the behaviour of these so called 'tax Dodgers' ala amazon Starbucks etc is so abhorrent why don't we as consumers drive them out business in the UK by not giving them our money?

    Clearly for all the righteous indignation the vast majority of people clearly don't care.

    The vast majority of people in Greece didn't care about non-collection of taxes as well.......
    "Real knowledge is to know the extent of one's ignorance" - Confucius
  • kinger101
    kinger101 Posts: 6,520 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Facebook doesn't make any money anywhere does it?

    About USD 1.5 B in 2013 and USD 3.0 B in 2014.
    "Real knowledge is to know the extent of one's ignorance" - Confucius
  • kinger101
    kinger101 Posts: 6,520 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 12 October 2015 at 7:41PM
    its the first part of your comment that is key.

    "pretty unlikely that a company the size of facebook can make huge international profits and yet hardly any taxable profit in the UK"

    Cut Facebook UK off from accessing any of Facebook US, brand, IP or software, and how long do you think the company would last? In other words, spin off Facebook UK and you'd get nothing for it, as the value is generated in the brand and IP, which is NOT a UK asset.

    That would imply (fag packet) that the transfer pricing is reasonable.

    The UK revenues are all based on advertising. Presumably for UK Facebook account holders looking at adverts for stuff sold in the UK. The asset is essentially the accounts.

    The tax affairs of Facebook means the US isn't seeing much corporation tax either.

    If the UK is so unprofitable, why are they paying their staff huge bonuses. Would your boss give everyone a £90K bonus if the team made £20K profit?
    "Real knowledge is to know the extent of one's ignorance" - Confucius
  • Mistermeaner
    Mistermeaner Posts: 2,989 Forumite
    Tenth Anniversary 1,000 Posts
    kinger101 wrote: »
    About USD 1.5 B in 2013 and USD 3.0 B in 2014.

    Is this in advertising revenue?

    Maybe I'm impervious but dont think I've ever clicked on an ad that's popped up on facebook
    Left is never right but I always am.
  • kinger101
    kinger101 Posts: 6,520 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Is this in advertising revenue?

    Maybe I'm impervious but dont think I've ever clicked on an ad that's popped up on facebook

    I think so. The turnover in 2014 was about USD 12.5 B. I've never clicked an ad either, but I have AdBlock Plus installed.
    "Real knowledge is to know the extent of one's ignorance" - Confucius
  • martinsurrey
    martinsurrey Posts: 3,368 Forumite
    kinger101 wrote: »
    https://en.wikipedia.org/wiki/Double_Irish_arrangement

    https://en.wikipedia.org/wiki/Corporate_tax_in_the_Netherlands

    This type of nonsense means Facebook is paying hardly any corporation tax on it's worldwide operations. Personally, I think the EU should focus on the harmonization of corporation tax law as a priority. Too many of its member states are tax havens, or conduits to them at least.

    In fact the main reason is the US's remittance basis for the payment of Corp tax, no amount of tinkering by the EU would change this, if the US made their corp tax payments on a earned basis, most US corps would be paying billions to the US.

    kinger101 wrote: »
    The UK revenues are all based on advertising. Presumably for UK Facebook account holders looking at adverts for stuff sold in the UK. The asset is essentially the accounts.

    The accounts are only worthwhile if we use them, and we do that because they are on Facebook, with all of its features and brand, which was all generated in the US, as I said, sell the UK accounts, but they cant use the Facebook IP, infrastructure or brand, and it'll close overnight, they alone are worthless.
    kinger101 wrote: »
    The tax affairs of Facebook means the US isn't seeing much corporation tax either.
    and that is a matter for the US, as above, the US knows the game and could change it if they wanted.
    kinger101 wrote: »
    If the UK is so unprofitable, why are they paying their staff huge bonuses. Would your boss give everyone a £90K bonus if the team made £20K profit?

    First, the UK made millions of profit pre bonus.

    Second, it depends on what my bosses goal was. If it was to increase market share he might, if it was to grow the revenue base he might, if it was to increase brand awareness and reach, he might.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 348.3K Banking & Borrowing
  • 252.1K Reduce Debt & Boost Income
  • 452.4K Spending & Discounts
  • 240.8K Work, Benefits & Business
  • 617.1K Mortgages, Homes & Bills
  • 175.6K Life & Family
  • 254K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.