Categorized | news

More proof that big firms routinely get away with murder

Hold on to your knickers, lads: we’re about to go on the kind of wild ride that can give even the most stalwart accountant night terrors.

New evidence just emerged that social media juggernaut Facebook paid exactly nil for its corporation tax over the past year. That’s right – absolutely nothing. This is even more outrageous because Facebook’s UK operations made up a sizable portion of the digital advertising marketplace; the kind of portion that aw its income increase by a full 70 per cent!

So exactly how much did Facebook take in last year when it came to digital adverts? Well most estimates say upwards of £220 million. At least last year the multinational paid £238,000 in corporate tax the year before – not that such a paltry sum was anywhere near a fair and equitable amount! All in all, the social networking site has made £500 million from UK-based revenues since 2007, but in that time it’s only paid around £1 million in corporation tax.

Is it just me or does this seem like absolute twaddle? How can a corporation make shedloads of cash over the past five or six years but only pay a pittance in taxes over that same amount of time? And why is it that Facebook gets a free pass while HMRC doggedly pursues every single possible instance of tax avoidance from small business owners and contractors regardless of whether there was actually any wrongdoing?

Well you know the answer just as well as I do: the Government is absolutely terrified of alienating large multinationals such as Facebook by actually holding their feet to the fire. This is exactly why there are so many bogus corporate tax breaks and legal loopholes for high-powered multinational firms! Most of the trouble is that ministers fear the negative impact on the UK economy if these multinationals pulled up tent stakes and moved off to some other country, depriving thousands upon thousands of Brits of career opportunities that pump cash back into the economy.

On the one hand I can understand that fear, but how is this fair to the rest of us who are desperately trying to make our way in the world as a sole trader? And since when do we allow ourselves to be held ransom by multinational companies that care for nothing but their profit margins? It’s criminal, if you ask me, and it needs to change!

Be Sociable, Share!

Leave a Reply

You must be logged in to post a comment.

  • Switch Accountants for FREE

    Switch Accountants for FREEAt K&B Accountancy Group we have introduced a simple and straightforward approach to changing accountants. We’re offering contractors, consultants and freelancers the opportunity to switch to K&B Accountancy Group for FREE without the need to pay for any ‘catch up’ or retrospective accountancy fees for the previous year’s accounts and corporation tax return* *T&Cs apply

our top 5 twitter posts

twitter

contractor accountants

contractoraccts



twitter Join the conversation
Free Telephone Advice