This article is from the source 'independent' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.independent.co.uk/news/business/news/facebook-staff-get-tens-of-millions-in-shares-but-social-media-giant-pays-no-tax-in-the-uk-9810299.html
The article has changed 3 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Facebook London staff get tens of millions in shares – but social media giant pays no tax in the UK | |
| (about 4 hours later) | |
| Facebook looks set to spark a fresh row over offshore tax avoidance as UK accounts showed it paid no corporation tax for the second year in a row while granting shares worth tens of millions of pounds to London staff. | Facebook looks set to spark a fresh row over offshore tax avoidance as UK accounts showed it paid no corporation tax for the second year in a row while granting shares worth tens of millions of pounds to London staff. |
| Research firm eMarketer estimates Facebook’s London operation in Euston made £371 million in revenues last year, up from £223 million a year earlier. | Research firm eMarketer estimates Facebook’s London operation in Euston made £371 million in revenues last year, up from £223 million a year earlier. |
| However, the accounts show lower revenues because Facebook processes much of its British sales in low-tax Ireland. | However, the accounts show lower revenues because Facebook processes much of its British sales in low-tax Ireland. |
| Facebook UK declared revenues of £49.8 million and a pre-tax loss of £11.6 million. | Facebook UK declared revenues of £49.8 million and a pre-tax loss of £11.6 million. |
| The social media giant incurred a tax charge of just £3,200 and ended up receiving a credit of £182,000 because of adjustments for prior years. | The social media giant incurred a tax charge of just £3,200 and ended up receiving a credit of £182,000 because of adjustments for prior years. |
| Yet the US parent company is highly profitable, reporting a net profit of $1.5 billion (£900 million) last year. | Yet the US parent company is highly profitable, reporting a net profit of $1.5 billion (£900 million) last year. |
| The company ran up a £15.5 milion cost for “share-based payment” for its 208 London staff but they got far bigger windfalls. | The company ran up a £15.5 milion cost for “share-based payment” for its 208 London staff but they got far bigger windfalls. |
| UK staff collected more than 1.5 million free shares which were “settled” and are worth about $119 million (£72.5 million), based on Facebook’s present stock price above $78. | UK staff collected more than 1.5 million free shares which were “settled” and are worth about $119 million (£72.5 million), based on Facebook’s present stock price above $78. |
| That works out at about £350,000 a head per employee if they have held onto their shares. | That works out at about £350,000 a head per employee if they have held onto their shares. |
| In addition, employees are in line for a further 2.2 million shares, worth about £105 million. | In addition, employees are in line for a further 2.2 million shares, worth about £105 million. |
| Facebook declined to comment but has said it always pays tax according to the laws of each country. | Facebook declined to comment but has said it always pays tax according to the laws of each country. |
| Chancellor George Osborne has promised a change in the law to crack down on offshore tax avoidance after warning last month: “Some technology companies go to extraordinary lengths to pay little or no tax here.” | Chancellor George Osborne has promised a change in the law to crack down on offshore tax avoidance after warning last month: “Some technology companies go to extraordinary lengths to pay little or no tax here.” |