Social media giant Facebook paid no corporation tax in the UK last year, according to reports in the Guardian. That’s despite them taking an estimated £223M share of the digital advertising market in the UK.
Over the last two years it’s estimated that Facebook’s British revenues have risen from £181 in 2011 to £223m in 2012.
The vast majority of Facebook’s advertising revenue from its 33 million British users is siphoned through their Irish subsidiary.
Along with Facebook, Google and Apple are have also taken advantage of Ireland’s lower tax rates.
Margaret Hodge, chairwoman of the Public Accounts Committee criticised Facebook’s actions:
“This is yet another example of what appears to be deliberate manipulation of accounts of economic activity to deprive the British taxpayer of a rightful tax contribution, according to the profits they make in the UK”.
Facebook responds
In statement, a Facebook spokesman said:
“Facebook pays all taxes required by UK law and we comply with tax laws in all countries where we operate and have employees and offices. We take our tax obligations seriously, and work closely with national tax authorities around the world to ensure compliance with local law.”