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It is rather hilarious that there is a big uproar that big companies pay low corporation tax when the tax & nic paid on salaries brings more money to the taxman.
But it definitely makes a good headline story for the laymen.
It's also hilarious (not)
That most UK companies pay corporation tax and have employees, and the profits are more likely to stay in the UK. Talk about an unlevel playing field.
Why are international companies given a big advantage over UK companies just for taking money out of the UK? It's like a home goal in my eyes.
Tax on loss?
I'd be quite interested in knowing what add-backs they had to be paying tax at all. That is a fairly big accounting loss to turn back around into a profit for tax purposes.
The other question is whether Facebook as a whole is making any money. i.e. Is it a case of Facebook moving profits out of the UK to avoid paying tax here, or is it not making profits anywhere to be taxed.
They actually seem to have a
Stepurhan: They actually seem to have a trading profit for the year, covered by losses brought forward. The tax seems to be on interest received. The accounting loss comes from a £35m charge for RSUs, which of course gets added back, and the tax deduction for RSUs isn't enough to eliminate their current-year profits.
Source?
Thanks for that.
If that is the case it would seem the low amount of tax is no more a news story than if a completely UK company with losses brought forward didn't pay much tax. Probably just laziness on my part, but any chance you could provide a link to where you found that info.