Thursday 17 October 2019

Facebook told it 'must pay more tax' in UK

Revenue

'Facebook’s vice president of Northern Europe, Steve Hatch, said the company was investing heavily in the UK and will employ 3,000 people in the country by the end of the year.' Stock image
'Facebook’s vice president of Northern Europe, Steve Hatch, said the company was investing heavily in the UK and will employ 3,000 people in the country by the end of the year.' Stock image

Jamie Harris

Facebook paid £28.5m (€32.7m) in UK taxes last year despite reporting growing revenue of £1.65bn from advertising sales.

The tech giant's latest UK accounts reveal that pre-tax profits jumped by more than 50pc from the year before, to £96.6m (€111m).

Its tax bill for 2018 came in at £30.4m, but this was reduced by £1.9m due to deferred tax and effects of changes in rates - up from the £15.8m it paid in 2017.

MP Margaret Hodge, who chairs an all-parliamentary group on responsible tax, called the amount "outrageous".

"One year later and little has changed," she tweeted.

"This year Facebook paid £28m of tax on UK income of £1.6bn. These big corporations simply must pay more tax. They rely on our infrastructure, our expertise, and our sales so they must pay their fair share into society. Still outrageous."

Labour's shadow chancellor John McDonnell said: "How many more examples of large-scale tax avoidance does this government need before it will take action?

"It's no wonder people are outraged at the grotesque unfairness of our tax system."

Facebook's vice president of Northern Europe, Steve Hatch, said the company was investing heavily in the UK and will employ 3,000 people in the country by the end of the year.

"The UK is now one of Facebook's most important hubs for global innovation," he explained.

Irish Independent

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