Facebook has been in the news recently because of its paying <1% of it’s total UK sales revenue in UK corporation tax.
Despite the rightly negative tones resounding through the news reports, they actually paid closer to 0.5% of their revenue, because of claiming back a significant chunk of that tax in tax credits, because of sharing profits with their workers.
The reported Facebook sales/ tax figures break down like this:
- £1.3 billion U.K. sales
- £62.7 million – pre-tax UK profits
- £15.8 million tax
- £8.4 million claimed back in tax credits
- £7.4 million paid in tax
£444 million in ‘administrative expenses….?
Apparently, Facebook’s books show that the company’s recorded £444 million in unexplained administrative expenses, which I’d like to find out more about… as far as I’m aware we haven’t had a global shortage of paper clips recently, so I’d like to know what £444 million worth of ‘administration’ looks like.