That diverted profit tax in full

Until April, all Facebook’s UK advertising sales were routed through its operations in Dublin, reducing the UK tax bill. Activities at Facebook UK, meanwhile, were confined to selling “sales support, marketing services and engineering support” to other companies within the Facebook group.

But in that month, Facebook’s UK sales activity was transferred from Dublin to London, following the then chancellor George Osborne’s introduction of a punitive rate of tax for multinationals deemed to be artificially shifting British sales overseas.

Ahead of the change, turnover at Facebook UK Ltd doubled in 2015 to £210m, but this did not include a penny of the hundreds of millions of pounds in sales income that the wider group is estimated to have received from British advertisers.

Losses for Facebook UK increased from £28.5m to £52.5m in 2015. As a result, the accounts showed that Facebook UK ended the year with a tax credit of £11.3m, compared with a tax bill of £4,327 in 2014.

This closing the tax gap is hard, innit?

7 thoughts on “That diverted profit tax in full”

  1. Why is Murphy not paying income tax in the US, Canada, Aus, Europe, Asia etc?

    There are people there who are reading his blog?

  2. So Much For Subtlety

    I am prepared to ditch quite a lot of fairness and due process as long as Facebook gets screwed over. They shadow banned Dilbert’s Scott Adams? I am prepared to support rights for people who support rights for me.

    I can think of no one who deserves endless persecution by the Inland Revenue more than Facebook, Starbucks and Google.

  3. And IIRC the tax paid in 2014 was on investment income.

    Their business model in the UK is to pay people lots and lots of money so the employees are happy and the company makes no profit.

    Question for squawking Lefties – Would you rather they paid less to their employees (who are paying 45% income tax) just so they could pay some corporation tax (at 20%)?

  4. “I can think of no one who deserves endless persecution by the Inland Revenue more than Facebook, Starbucks and Google.”

    Margaret Hodge?

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