After some major corporate changes Facebook may be made to pay millions and would no longer be able to evade their tax payments. This plan will mostly benefit UK and USA as well as mitigating the the criticism that institutions such as Facebook are currently receiving due to avoiding paying their tax. Facebook also works with advertising agencies and gain great profit from that aspect.
- The UK represents less than 10% of Facebook’s global revenue
- more than 850 staff remain an important part of the business
- The company faced criticism after it was revealed it paid just £4,327 in corporation tax in 2014, despite its UK staff taking home an average of £210,000 in the same period
- The world’s poorest nations are hardest hit by corporate tax dodging - losing at least $100bn every year that could pay for hospitals and schools.
- Google’s similar ad-sales arrangements showed that only 1% of its ads were sold offline, but that they accounted for approximately 60% of the company’s revenue in the UK
- HMRC, which spent £27,000 on adverts with Facebook in the past year, would not comment on the particulars of the social network’s tax arrangements.
- Google has also been criticised for its tax arrangements. It agreed to pay £130m in back taxes in January
It has been a very apparent issue recently that big institutions, Google and Facebook only being two of the many, who avoid paying great taxes. But as the companies have been receiving may criticisms of their actions, they are feeling more pressurized to change how they go about paying for taxes and have decided to pay their taxes in full.
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