Facebook paid £4,327 corporation tax in the UK in 2014
Not from me:
As an accountant, most people are not going to be happy with my comment, as it goes against the Group Think here, but this number likely makes sense for the following reasons:
1) Facebook is an American company so discussing up its U.K. Income tax is click bate, pure and simple. American companies pay the majority of income taxes to the US, of which Facebook had at $1.9B tax bill in 2014.
2) there are very complex cross-border income tax rules, where at a high level, other countries will make a corporation pay income tax on business income earned in its country. However, it says right in the article, Facebook UK had a taxable loss last year, and in most jurisdictions you can use prior year losses to reduce current year taxes payable, which is likely what is happening here.
3) they would be paying a lot of other taxes to the UK government. The article mentions employees meaning there will be a host of payroll taxes. There would also be sale tax. The article implies shirking the system, but believe me, governments want and get their money.
In summary, this article is click bait trying to get people angry at things they do not understand unless you work as an accountant or tax lawyer..<p>Source:
<a href="https://www.reddit.com/r/worldnews/comments/3ofo13/facebook_paid_4327_of_uk_corporation_tax_in_2014/cvwz9ft" rel="nofollow">https://www.reddit.com/r/worldnews/comments/3ofo13/facebook_...</a>