The tax dodging practices of the tech giants: a comparison

Facebook has been in the news recently because of its paying <1% of it’s total UK sales revenue in UK corporation tax.

Despite the rightly negative tones resounding through the news reports, they actually paid closer to 0.5% of their revenue, because of claiming back a significant chunk of that tax in tax credits, because of sharing profits with their workers.

The reported Facebook sales/ tax figures break down like this:

  • £1.3 billion U.K. sales
  • £62.7 million – pre-tax UK profits
  • £15.8 million tax
  • £8.4 million claimed back in tax credits
  • £7.4 million paid in tax
£444 million in ‘administrative expenses….?

Apparently, Facebook’s books show that the company’s recorded £444 million in unexplained administrative expenses, which I’d like to find out more about… as far as I’m aware we haven’t had a global shortage of paper clips recently, so I’d like to know what £444 million worth of ‘administration’ looks like.

 

 

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