Facebook has again attracted controversy over its corporation tax contributions in UK after paying nothing in 2013, down from just £238,000 the year before.
The social network is able to avoid paying millions in tax by diverting a significant portion of its sales through Ireland, the Evening Standard reports.
Similar tactics have seen Google at the centre of a heated tax row, prompting Labour MP and Public Accounts Committee chair Margaret Hodge to brand it “evil”, in reference to its mantra “don’t be evil”.
Facebook – founded by Mark Zuckerberg (pictured) – reported £34.6m turnover in the UK, declaring £2.4m in losses and estimated sales of £223m.
In reference to Facebook’s latest update, Hodge said: “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.
“I am getting fed up of this constant stream of stories and little sign of a challenge from HMRC and a strange silence from government.”
A Facebook spokesman said: “Facebook pays all taxes required by UK law and we comply with tax laws in all countries where we operate. We take our tax obligations seriously, and work closely with national tax authorities around the world to ensure compliance with local law.”
Story from Accountancy Age