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Facebook pays just £4,327 corporation tax in 2014.
Comments
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When was the last time any of us paid any money to Facebook?0
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Whoops. .Left is never right but I always am.0
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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.0 -
martinsurrey wrote: »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" - Confucius0 -
Mistermeaner wrote: »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" - Confucius0 -
Mistermeaner wrote: »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" - Confucius0 -
martinsurrey wrote: »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" - Confucius0 -
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Mistermeaner wrote: »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" - Confucius0 -
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.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.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?
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.0
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