Avoidance or Evasion? How Facebook Paid Less Tax Than You Last Year
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Sky News
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Starbucks, Apple and Microsoft have also come under fire for their lack of pay to the government. With the average UK worker earning approximately £26,500, which means a tax contribution of £5393, many employed in Britain are paying more than the social media giant.
According to the company's accounts, this is due to the company operating at a loss of £28.5million in Britain due to a £35m payout to its workers in a share bonus scheme. A spokesperson for the company said: "We are compliant with UK tax law and in fact all countries where we have employees and offices. We continue to grow our business activities in the UK." But what is the difference between tax avoidance and evasion, other than one being totally legal and the other not?
Tax EVASION: under-reporting income, the use of illegal scheme to avoid paying tax, ie off-shore accounts
Tax AVOIDANCE: uses legal schemes to reduce corporation tax
Therefore by implementing tax avoidance schemes, the company avoids any legal obligation.
The news comes after Chancellor George Osbourne had pledged to limit tax avoidance schemes in the UK. He is purported to outline further proposals related to tax avoidance and evasion in December.
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Avoidance or Evasion? How Facebook Paid Less Tax Than You Last Year
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Tuesday, October 13, 2015
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Reviewed by Unknown
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Tuesday, October 13, 2015
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