Facebook Accused of Taking UK for a Ride Over Taxes

0 Posted by - October 11, 2012 - Career & Business, Economics, Money, Science, Video Games & Apps

Facebook accused of takin 008 300x180 Facebook Accused of Taking UK for a Ride Over TaxesFigures suggest only 11% of sales in UK are declared, with company benefiting from basing its HQ in Dublin

Facebook has been accused of taking the British taxpayer for a ride after experts suggested the company had depressed sales figures and that the website’s average UK employee earned more last year than the whole social media network paid the exchequer.

The British arm paid its 90 UK-based staff an average of £275,000 each in 2011 while contributing just £195,890 to the Treasury’s coffers, according to the firm’s latest accounts filed at Companies House.

The website also reported UK revenues of £20.4m, a fraction of the £175m that media analysts estimate the firm made in the UK in 2011.

Most of the sales are believed to have been booked in the firm’s international headquarters in Dublin, where they will attract lower corporation taxes.

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.”

CONTINUED at the Guardian.

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