Facebook Britain Paid Corporation Tax Worth Less Than £4500

Facebook is not earning enough from the United Kingdom operations.

The taxation details of Facebook have been revealed. In 2014, the employees of the Californian enterprise were paid an average of greater than £210,000 in bonuses and salary, while the company paid a corporation tax worth £4327.

Last year, Facebook was troubled by a financial loss worth £285, 0000 in United Kingdom, after paying greater than £35,000,000 to its 362 employees in a share bonus program, as disclosed by the division’s most recent accounts. An operating loss indicated that the company was able to pay a sum less than £5000 in corporation tax to HM Revenue for the year.

The share program was worth an average of greater than £96,000 for each member of staff. Once incomes were taken into consideration, a British worker of the company earned more than £210,000 on average. Facebook’s tax contribution, which claimed in 2013 that at least 33% of British adults visited its site every day, would add to the discussion about how to make sure that multinationals pay their due taxes in each state in which they are operating.

In 2014, the company earned a profit on its global operations of $2,900,000,000 (£19,000,000,000), on revenue of $12,500,000,000. Facebook News affirmed that its U.K. revenues were recorded at £105,000,000 last year.

An official of Tax Justice Network stated, “It’s very likely they’re using all the usual techniques to shift profits around.” Facebook News today reported that the company’s spokeswoman stated, “We are compliant with UK tax law, and in fact in all countries where we have operations and offices. We continue to grow our business activities in the UK”. She also said that U.K. income tax was levied on the incomes of the company’s workers.

Facebook Breaking News reported that the social media platform lately leased a high profile 227,324 feet office space in Rathbone Square, situated near Tottenham Court Road in London, where it aims to establish a new office in 2017.

Chancellor of Exchequer, George Osborne, has promised to take action against tax evasion of multinational companies by rapidly enacting new laws made by the French Organization for Economic Co-operation and Development (OECD), which has turned into a center for worldwide tax reform in recent years.

The so called “base erosion and profit-shifting” were utilized by many companies to minimize their tax liabilities by earning profits in low-tax regimes. The chancellors have repetitively reduced corporation tax, which is deducted from company profits, but he contends all companies should pay their due tax to the exchequer.