Facebook Corporation Tax Bill - right or wrong?

By : Administrator
Published 12th October 2015 |
Read latest comment - 12th October 2015

The story broke on the BBC:

"Social network giant Facebook paid just £4,327 ($6,643) in corporation tax in 2014, its latest UK results show.

Its most recent Companies House filing shows the company as making a pre-tax loss of £28.5m last year, but the firm also paid its 362 UK staff a total of £35.4m in share bonuses."

It sounds incredulous, but as John O'Connell, director of the Taxpayers' Alliance, says:

"Taxpayers will be justifiably confused and angry about this tax bill. But Facebook is right to say that it is complying with UK law, which shows that the problem lies with our complex tax code, and that is what politicians should address as a matter of urgency."

"We have to ensure our taxes are simple to eliminate loopholes, and that taxes are low to increase our competitiveness, so that companies choose to base themselves here."

It's an interesting issue and an obvious headline grabber. We can beat our chests in outrage at Facebook cheating us out of tax money, when you can argue it's our complicated tax system with its many loop holes that has caused the problem.

Or should we expect Facebook to do more than comply with the law, and pay an expected level of tax? What would you do as a business owner? Be compliant, or say, we're not paying enough, let us pay more?

Corporate responsibility versus ethical responsibility versus shareholders? Guess it depends on which side of the fence your on 


Steve Richardson
Gaffer of My Local Services
My Local Services | Me on LinkedIn
Comments

I would say they should pay the tax like every one else.. But it is up to the government to enforce these changes


Thanks,
Andy-C | Pewter World

There's no way they'll pay it if they don't have to, not unless they are a super ethical company and Facebook certainly aren't in my opinion/experience. The system needs sorting out, it's preposterous.


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