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What is the news here? FB was making a loss last year, so why should they pay corporation tax?
by 3dfan 11y ago
What is the news here? FB was making a loss last year, so why should they pay corporation tax?
- IshKebab 11y agoThey didn't make a loss. Read the whole article.
- devit 11y agoThe UK subsidiary was apparently making a loss, but the company as a whole wasn't. This might mean they shuffled money around to avoid paying UK taxes, i.e. they engaged in https://en.wikipedia.org/wiki/Transfer_mispricing https://en.wikipedia.org/wiki/Transfer_mispricing potentially breaking the law.
- ptaipale 11y agoThen the taxman can get them. They just need proof. If the case is clear, why don't they go and get Facebook for breaking the law? Most likely because the case is not so clear: it is far from clear that they engaged in any transfer mispricing.
- Marazan 11y agoThe UK subsidiary made a "loss" whilst paying out millions of bounds of stock bonuses. Either Facebook UK is the most incompetently manged company in the world orrrrrrr...
- fooster 11y agoThe bonuses were taxed at personal tax rates, rather than coroporate. Furthermore, the personal tax rate is higher than the corporate, so why is this a bad thing again?
- exDM69 11y ago> FB was making a loss last year They don't make actual losses - they pay all of their profits as "license fees" to some offshore entity to get their accounting show no profits. This probably means Luxemburg or Netherlands where they have a personalized deal with the tax authorities and the taxation of immaterial property is very low. In reality they made a shitload of money, and are using creative accounting to make it look like they made a loss. This is tax evasion, not making a loss.
- deleted 11y ago[deleted]