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Anorak | Facebook Pays No UK Corporation Tax For Second Year

Facebook Pays No UK Corporation Tax For Second Year

by | 23rd, October 2014

The usual lefties and liberals are up in arms about the fact that Facebook seems to have paid no corporation tax here in the UK for a second year. There’s a couple of really very impotant points they’re missing though :

Facebook paid no UK corporation tax for the second year in a row in 2013, while employees received shares in the company worth tens of millions of pounds.

The world’s largest social media company reported a pre-tax loss of £11.6m in the UK last year, despite its US parent company reporting a net profit of $1.5bn (£900m).

Hmm:

The company employed an average of 172 UK staff, who were paid £40.8m last year, almost double the 2012 figure of £21m.

This is because of a £15.5m payment cost for “share-based payments”.

UK staff received 1.52m free Facebook shares worth $118m at their current share price of about $78.

So, why didn’t Facebook make a profit in the UK? Because it gave out shares in the company to the employees. And over in leftyland we always thought that was a

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Posted: 23rd, October 2014 | In: Money Comment | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink