Facebook have unsurprisingly joined the ever growing list of major international companies that have been accused of tax dodging in the UK. The are accused of only paying £2.9 million in corporation tax in more than £800 million overseas profits £240,000 of which went to the UK tax man. Facebook are using their Ireland HQ to avoid having to pay full UK tax and channelling the money to a company in the Cayman Islands. When you pay for an advert on Facebook (which we have) You do so via their Ireland operation. Facebook joins a list that includes Google, Apple and Starbucks.
A Labour MP had recently spoken on the matter calling facebook "disingenuous and immoral". John Mann MP also said "They benefit enormously from the country and the Internet infrastructure but do nothing to fund it.".
OK OK so before you decide to boycott Facebook!...Which would be a much harder thing to do than to change which coffee shop you buy from. The problem here is that there are many loopholes in aid of avoiding payment of Tax so it is in my humble (yet naive I'm sure) opinion that the ownness is not on multinational companies to change how they do things but on the governments of the world to close the loopholes because once the loopholes are closed then the companies HAVE to comply. There is no point going on about their practises if they are not illegal.