Facebook faces Criticism for not Paying Tax in UK
Facebook faced criticism today for not paying corporation tax in the UK last year. It was despite of the fact that it was raking in an estimated £223million. If revelations of Accounts have to be believed, the British arm of the social networking giant, Facebook UK, incurred an official loss in Britain in 2012.
As per figures, its turnover here was £34.6million. However, experts believe that the real worth of the £34.6million is likely to be more than £200million. This huge amount of money is earned by Facebook mostly through advertisements.
Margaret Hodge, chairman of the Commons Public Accounts Committee, 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".
Richard Murphy, of Tax Research UK, raised a question over records of sales from UK advertising. He said that if the sales were recorded then he suspects it would be profitable.
According to him, the company is avoiding tax and that is why it is not practicing the habit of recording its sale income in the UK. UK advertising sale was predicted to be more than £200million last year.
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