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Facebook paid £4,327 corporation tax in the UK in 2014

bbc.co.uk

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Re: Facebook paid £4,327 corporation tax in the UK in 2014

#161

Earlier quoted context omitted.

First we were told to be nice to the rich and give them tax reduction, because we will be all happy for the trickling down pennies. And now we are supposed to give the cooperation tax relief because there is money trickling down from the employees?

Do you know what's even better? The rich taking their business somewhere else Then the unions can cry foul about how the big bad companies wouldn't put up with their crap anymore I'm sure in an ideal world everybody would be a public servant with no productivity goals but that has problems as well

Sorry, I do not get what you want to say.

Re: Facebook paid £4,327 corporation tax in the UK in 2014

#162
I worry about the drip-drip-drip of information that the British public can (and probably will) use to end up at the conclusion that leaving Europe in the future will be the silver bullet to all of the issues.

Immigration from Europe > Leave Europe (we're an island!)

Can't deport or be cruel to alleged terrorists > Leave Europe (we don't need the European Convention on Human Rights)

Can't stop corporations playing the tax system > Leave Europe (the borders become hard, the taxes unavoidable)

Our press don't really need more reasons to whip up the anti-EU mob, corps shouldn't help them do so.

Re: Facebook paid £4,327 corporation tax in the UK in 2014

#163
post #43

The UK press seems to have a field day when it comes to multi-national corporations not paying corporation tax. We will no doubt shortly have a number of MPs telling us how unacceptable this is and that Facebook need to start paying up. This all irks me a little. 362 Facebook staff on an average salary of say £65,000 will contribute at least £7,230,696.60 in taxes and NI to HMRC. Let's also not pretend that £65,000 i…

Do you think they'd pay more or less tax in Dublin compared to £5k? Irelands 12.5% seems very reasonable considering its so close to its effective rate. France, Britain and Germany all allow massive write offs and loop holes that mean their effective rate is multiples lower than their stated corporate tax rate and this story will be forgotten by the Brits, Germans and French who'll turn around and repeat their condem…

[deleted]

Re: Facebook paid £4,327 corporation tax in the UK in 2014

#164

Earlier quoted context omitted.

Because we have quadriplegics who need 24 hour care so they don't die. Just to choose one random example of why we choose to have a government that levies taxes and provides services.

Why not finance helping quadriplegics from increased VAT? If it comes to that, why not finance helping quadriplegics from charity?

In the US we already have charities and they're not really taxed and if you donate to those charities, the money you donate is (generally) not taxed.

Re: Facebook paid £4,327 corporation tax in the UK in 2014

#165
post #70
post #12

Global companies offshoring profits and not paying enough tax (in the eyes of many countries) was a hot topic at the last G20 summit in Brisbane. This isn't limited to Facebook, as the article explains. The issue and background here is that when large companies operate globally, each country has its own local subsidiary, owned by the global entity. Money is made in each country by selling goods or services. How are t…

Well, in hypothetical laissez-faire capitalism taxes would not be needed to provide infrastructure - Uber would just have to pay its fees for driving on private roads (etc.). This would drive prices up, but fairly divide the costs between the roads' users. Although I must admit I have no idea how things could look with purely digital companies like Facebook. I can think of local ISP-s charging the company for allowin…

This arrangement collapses into monopoly very quickly. Facebook would bypass or buyout the local ISPs.

(A world of purely voluntary contracts and no compulsory purchase would never have got past the development of the railway or telegraph, so the whole prospect is ludicrous)

Re: Facebook paid £4,327 corporation tax in the UK in 2014

#166
post #12

Global companies offshoring profits and not paying enough tax (in the eyes of many countries) was a hot topic at the last G20 summit in Brisbane. This isn't limited to Facebook, as the article explains. The issue and background here is that when large companies operate globally, each country has its own local subsidiary, owned by the global entity. Money is made in each country by selling goods or services. How are t…

Great summary, I'd like to add > while not dis-incentivising multi-nationals from doing business in each country I'd argue that the incentive to do business in several countries is the profit they're making in those countries. No company is going to walk away from a company because they're being charge x% of tax on the money they earn. They might say they will, but they may as well be saying this... "Because I don't…

Return on investment weighs heavily on most business decisions. If I invest $X, by the end of the year I'll get $X*(1+return%).

Since companies can't invest everywhere at the same time, they prioritize investments. A higher tax rate might mean investing in that country later, as there are other investments than have a higher immediate return.

I could see a situation where an investment was profitable, but so marginally profitable due to the tax rate that the investment was delayed effectively forever.

Re: Facebook paid £4,327 corporation tax in the UK in 2014

#167
Am I alone in thinking corporation tax is idiotic?

I think corporations are incredibly immoral institutions (due to skewed incentive structures), however - ultimately it's a collection of investors, owners and employees.

Why not be honest and tax the corporations on the outflow of capital? ie. dividens, wages and sales tax

Corporate tax is ultimately a populist hidden tax on the whole economy b/c no one "feels" it. If you raise it everyone will whoop and cheer (b/c fuck big co!) and not appreciate it's impact on salaries or retirement funds.

Maybe I'm missing something?

Re: Facebook paid £4,327 corporation tax in the UK in 2014

#168
From my tax knowledge, in South Africa it's difficult to get away with paying ridiculously low amounts of tax consistently. The corporate tax rate is 28% taxed on worldwide earnings. Though you prepare returns as a single entity (i.e. each subsidiary files its returns and the holding company would also file its own return), there are transfer pricing provisions, as well as provisions for connected persons (related parties/companies) that make it difficult to just keep 'profits' in Ireland without paying taxes on them.

If I could argue that if FB was headquartered in SA it would be paying at least 20% effective taxes, then surely the issue would be that the specific countries (US and EU) have lenient tax laws. Companies will keep gaming the system if lawmakers don't have the appetite to ignore company lobbying and do what's best for the income of their countries.

Whether the issue is that they don't want to lose the business of these tech companies is something else. South Africa started imposing VAT on digital services sold by foreign companies last year. As a result my Google Play Music subs started costing me 14% more, funny enough as I technically shouldn't even be having All Access as I'm in an 'unsupported country'. Apple still charges me the same for music, which means someone had to take the loss to keep the value the same. Nonetheless, some people are unhappy, but our country gets to benefit with the extra 14% collected.

Re: Facebook paid £4,327 corporation tax in the UK in 2014

#169
post #73

Shameful. Just shameful. I don't care how it gets sugar coated, if you claim to be working for the good of humanity (in facebooks case by connecting people together) and then you loophole yourself out of paying taxes, you are morally bankrupt.

Why do people get mad at the company for not paying more in taxes? I presume they are following the law and paying what is required?

Why not get mad at the politicians who created the tax code?

Re: Facebook paid £4,327 corporation tax in the UK in 2014

#170
They should have a new tax where a companies profits are estimated globally and then a percentage of that is allocated to the countries where it trades based on the amount of trade done there. So if facebook's global profits are $2.9bn and it does 50% of trade in the US then it should be taxed as having made 1.45bn there and then pay US tax (35%) there so $507m there, even if they claim all the profits were made in some tax haven.

It seems a simple solution but there is probably not much lobbying money in the politicians bringing it about.

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