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Anorak | Dear Margaret Hodge: Facebook just isn’t avoiding tax in the UK

Dear Margaret Hodge: Facebook just isn’t avoiding tax in the UK

by | 9th, October 2013

Margaret Hodge MP outside No 10 Downing Street, central London, after handing in a petition - signed by more than 110,000 people - calling on internet retailer Amazon to pay their fair share of UK tax.

DEAR Lord the egregious Margaret Hodge is getting boring on this subject. She seems to ignore the manner in which every time she opens her gob on the subject of corporate tax she has to be corrected. It simply is not true that Facebook is avoiding tax in the UK :

However, those numbers are not reflected in its accounts. In common with fellow American technology leaders Google and Apple, Facebook funnels the vast majority of its income from advertisers targeting its 33 million British users through Ireland. “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,” said Commons public accounts committee chairwoman Margaret Hodge. “I am getting fed up of this constant stream of stories and little sign of a challenge from HMRC and a strange silence from government.”

Look. Facebook sells its advertising from Ireland. Thus the advertising revenues are booked in Ireland and pay whatever tax Ireland decides to levy upon them. This is not tax avoidance. It’s

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Posted: 9th, October 2013 | In: Money, Technology, The Consumer Comment | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink