Facebook under pressure for tax payments

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Facebook has come under renewed pressure for its tax payments to HMRC

According to the Sunday Times the latest reports filed for Facebook Ireland showed that the internet giant paid £2.9m in tax on profits of £840m.

The company channels its international profits through the Irish tax authority, meaning companies buying advertisements on the website anywhere outside of the US have to pay Facebook Ireland.

In a statement, Facebook said it complies with “all relevant corporate regulations.”

Google also came under pressure earlier this year for using its Irish subsidiary to reduce its liabilities to HMRC. In December, the online giant's chief executive defended his firm's payments, saying he was "very proud" of the controversial tax plan.

His comments ended a year where the tax payments of corporates have been much in the spotlight, with Starbucks, Amazon and Google called to give evidence to the Public Accounts Committee in November.

The chancellor George Osborne promised to tackle "unacceptable" tax avoidance in his autumn statement this month.

 

Helen Roxburgh

 

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