Facebook Still Liking the UK's Soft Tax Regime

By Gary Cutlack on at

The Facebook accountants have been working their magic around the fringes of UK tax law again, with the biggest internet thing in the entire world somehow ending up with a tax credit of £11m for the last year -- a windfall that can be used to offset any taxes in the future, should it ever actually declare anything taxable.

The latest figures include the £11.3m tax credit for last year, which is entirely baffling considering the social network booked a global profit of $6.19bn (£5bn) in its latest set of official accounts. The poor loss-making UK division contributed the tax credit, which means it -- technically and on paper at least, Mr Taxman -- declared no profit from its UK operations at all.

The period covers the year ending on December 31 of 2015, revealing the unlikely statistic that Facebook increased its losses from the previous year's £28.5m to £52.5m, landing its accountants the tax credit of £11.3m to carry forward and make it less likely than ever to ever pay a meaningful amount of tax in the UK in the near future. [Companies House [PDF] via Guardian]

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