As Facebook expands in the United Kingdom, the social media giant's corporation tax increases. The company paid £4.1 million last year after being publicly condemned for only paying £4,327 in 2014. For 2016, the firm is paying £4.16 million, which is still a tiny portion of their £210 million revenue.
Facebook Income And How They Pay Tax
Facebook earns more than one billion pounds globally in every three months. Recently, the company made changes to its corporation tax paying scheme as a result of the pressure of campaigners.
The social media giant was legally responsible for a lower tax because of the routing sales they have through Ireland, but the announcement they made last March said that the project will be ended soon. This means that the firm should start paying higher tax.
"We pay all the taxes that we are required to under U.K. law," a spokesman for the company said.
Meanwhile, Richard Murphy, an accountant and a professor of practice in international political economy at the University of London, said that it is hard to determine whether the U.S. Company is paying tax right.
"Facebook's U.K. accounts do not represent its real sales in this country, which are actually booked in Ireland with their true value never being disclosed," he said.
Jobs in Facebook
Facebook opened jobs for 682 employees in the U.K. last year, which is an increase from the 362 people they had in the earlier year.
"We are proud that in 2015 we have continued to grow our business in the U.K. and created over 300 new high-skilled jobs," a spokesperson said. "The U.K. is now home to some of the most innovative technologies in the world, including our investment in a high-tech solar-powered plane center in Somerset that will help bring the internet to remote areas of the world," he added.
