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posted by cmn32480 on Tuesday October 11 2016, @08:31AM   Printer-friendly
from the pounds-and-pence dept.

Arthur T Knackerbracket has found the following story:

Despite reporting a worldwide profit of $6.19bn (£4.97bn), accounts for the social network's British holding company show that it ended the year with a £11.3m tax credit, compared to a charge of £4,327 in the prior year.

Although Facebook UK did pay £4.17m in corporation tax for the year to December, accounts just filed at Companies House show that it ended 2015 in credit thanks to accounting rule changes.

The disclosures are likely to reignite the row over the amount of tax paid by large US multi-nationals in the UK, following recent comments on the subject by the Prime Minister.

The credit is the result of Facebook being able to offset some £15.5m of payments linked to its bonus scheme, meaning it ended the year with an £11.3m tax credit.

Although that does not mean HMRC (Her Majesty's Revenue and Customs) owes that amount to Facebook, the San-Francisco technology company will be able to use that credit to offset against tax due on future profits.

The entirely legal deferrals link to changes in HMRC's own accounting rules which Facebook adopted for the first time in the 2015 financial year.

This compared to £28.48m on sales of £104.9m in the prior year. For that year, Facebook paid £4,327 of corporation tax.

Losses after tax stood at £41.17m in 2015 from £28.5m in the prior year.

That loss came in part because Facebook paid £71m towards a share-based bonus scheme, the equivalent of £104,105 for every member of its UK workforce. The bonus payment equated to £35m in the prior year.

Last week, Theresa May used her speech at Conservative Party conference to highlight the issue.

In what was seen as a thinly veiled attack on Facebook and Apple, she said she was putting people in positions of power on notice that a "change must come."

"It doesn't matter to me who you are. If you're a tax-dodger, we're coming after you," she promised.  "An economy that works for everyone is one where everyone plays by the same rules.


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  • (Score: 2) by Geezer on Tuesday October 11 2016, @09:38AM

    by Geezer (511) on Tuesday October 11 2016, @09:38AM (#412863)

    He could have been speaking for The Zuck: "It appears my hypocrisy knows no bounds."

    https://www.youtube.com/watch?v=ub8uMcLiKJk [youtube.com]

    Starting Score:    1  point
    Karma-Bonus Modifier   +1  

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