Facebook made somewhere in the region of £223 million in advertising from UK social networking addicts last year, but that hasn't stopped its snakey accountants from slithering out of paying any UK corporation tax in the UK for 2012. Yep, a £0 tax bill.
That's down from an equally-paltry in £238,000 in 2011. Facebook made a pre-tax loss of £2.4 million on turnover of £34.6 million (boo-hoo), and has managed to avoid a hefty bill by processing its sales in Ireland, where corporation tax is much lower than in the UK. In Facebook's defence, that's a totally legal process under current HM Revenue & Customs’ tax law.
“Facebook pays all taxes required by UK law and we comply with tax laws in all countries where we operate and have employees and offices," said Facebook in a statement given to the Telegraph. "We take our tax obligations seriously, and work closely with national tax authorities around the world to ensure compliance with local law."
With the company expected to make around £303 million in the UK this year, it'll be interesting to see if it manages to keep the UK coffers overflowing when the tax man knocks in 12 months time. But with £11.8 million worth of unrecognised tax losses carrying forward, they may be able to dodge the bill for a while to come yet. [Telegraph]