3 ms·
So they paid next to no corporation tax. Meanwhile their employees will have paid a stack of income tax & the new rules on VAT should mean that all Facebook Ad
by pja 11y ago
So they paid next to no corporation tax. Meanwhile their employees will have paid a stack of income tax & the new rules on VAT should mean that all Facebook Ad sales to UK customers are subject to UK VAT.
I don’t think the UK is being shortchanged all that much. When Google/FB et al were able to shift Ad sales to low-VAT regime holding companies, that was definitely taking the piss. This? Meh.
- JupiterMoon 11y agoThis argument is not valid. Yes they are paying VAT and income tax. So what? They should also be paying corporation tax. A start up competitor would have to pay VAT, income tax and corporation tax.
- ghiculescu 11y agoNot if that competitor made a loss the way facebook has here.
- JupiterMoon 11y agoThese losses are paper losses. These type of paper losses are far easier for big multinationals to make than smaller domestic businesses.
- tonyedgecombe 11y agoThat wouldn't be an option in the way it is to Facebook if the competitor was based wholly in the UK.
- throwaway2048 11y agothese 'loses' are entirely due to bogus licensing fees paid to the mothership, and the 'loses' are made up with very generous term 'loans' from the same.
- yrro 11y agoBut they are playing Corporation Tax. To put it another way... what additional tax do you want them to pay that they are currently not paying?
- kuschku 11y agoThe full corporation tax, on their share of their worldwide income generated in britain.