Facebook’s actions ‘totally immoral’

Facebook Ireland's taxable profit was cut to �5.76-million.

Facebook Ireland's taxable profit was cut to �5.76-million.

Published Dec 8, 2014

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London - Facebook was accused of “totally immoral” behaviour after paying less than £2-million in tax on more than £2.37-billion worth of sales from Britain and other countries.

It channelled nearly half its £5.05-billion global revenue from advertising and paid-for games through Ireland last year where corporation tax is lower than in the UK and US.

It cut its tax bill further by paying out billions in “administrative expenses” largely made up of royalties to its parent company. Facebook Ireland’s taxable profit was cut to £5.76-million, so it paid only £1.8-million in corporation tax to Dublin. Facebook has paid no corporation tax in Britain for the past two years.

There is no suggestion of illegality. But Labour MP John Mann said Facebook’s actions were “totally immoral”. A Facebook source said it complied with tax law everywhere it operates, including Ireland. - Daily Mail

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