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£1.1m Tax Paid by eBay, They Made Over 1 Billion

We all know that big companies are getting away with paying tax in the UK, but £1.1m in tax from eBay? Surely this is a joke.

It gets even funnier when eBay themselves have announced that their revenue in the UK was £1.1bn last year.

They have 372 staff who mainly work in offices throughout London, and have been allowing online sellers to advertise their goods for years. Once a sale is made, either through an online auction or fixed price sale, then eBay takes a percentage of the sale for allowing the seller to list on their site.

When you consider that millions of Brits use eBay on a daily basis, then it’s easy to see why they are now a Billion pound company here, it’s just unfortunate there is virtually none of that money going back into the UK.

So how are they getting away with it you might be wondering? At the end of the day, it all comes down to very clever accountants who know the system and use it to their advantage.

Some experts have claimed that eBay use a very complex corporate structure that ultimately sends the majority of income into divisions of the company that operate overseas.

I suppose it’s nice when you can pay millions of pounds to accountants who can then plan out this type of structure, I’m sure this is a luxury that many contractors and self employed freelancers would like to have.

This really brings us to the question…Are eBay actually doing anything wrong, or are they just fairly gaming the system? There are many people who argue that it is the responsibility of a company to pay as little tax as possible legally, and if eBay have worked out a way to do achieve this they have every right.

To a point I agree with that statement, but it does become frustrating when you see these very big companies like eBay, Amazon, Google and Microsoft, who are basically paying no tax at all into the UK system.

I think the responsibility on this should come to the government, who must step in and investigate further as to what companies such as eBay are doing to only pay £1.1m in tax. They should then take appropriate action to stop it from happening.

This might not be possible though, because if those clever accountants are always one step ahead it means that many companies can enjoy operating in the UK basically tax free.

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