Facebook to pay more millions in UK tax

Mark Zuckerberg
Mark Zuckerberg

Sky News –

Facebook said recently  that it is to pay millions more in tax after overhauling its structure, last year it was revealed that it paid just £4,327 in corporation tax in 2014. This was against UK revenues of £105m in 2014 – a year where it made a profit on its worldwide operation of almost £2bn.

How much more tax this means Facebook will pay has not been made clear.

 But according to figures from data firm DueDil, Facebook UK paid £855,832 in tax from 2007-2014.

  •  It made a pre-tax loss of £54,186,962 in that period, and its most recent turnover (according to 2014 figures) was £105m.
  •  In Ireland from 2008 to 2014, Facebook Ireland paid €14,868,000 (£11,505,549) in tax and it made a pre-tax profit of €3,270,000 (£2,530,619) in that period.
  • Facebook Ireland’s most recent turnover (according to 2014 figures) was €4.837bn (£3.743bn).

The latest move by Facebook comes after search engine Google reached a controversial deal with tax authorities to pay £130m in taxes going back 10 years. Critics say the sum is derisory.

Facebook’s 2015 worldwide results posted earlier this year showed revenue climbed 44% to $17.93bn (£12.6bn) while net income rose 25% to $3.69bn (£2.59bn).

Facebook said: “On Monday we will start notifying large UK customers that from the start of April they will receive invoices from Facebook UK and not Facebook Ireland.

“What this means in practice is that UK sales made directly by our UK team will be booked in the UK, not Ireland. Facebook UK will then record the revenue from these sales.”

It said the changes would provide “transparency”.

HM Revenue & Customs did not comment specifically on Facebook , but said it “closely examined” firms to ensure they pay tax due in the UK.

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