News for hackers. Stuff that matters.
Re:Facebook paid £4,327 corporation tax in the UK in 2014 by radu_floricica on Monday October 12, 2015 @06:46AM (#10373651)
Tech companies don't show profits as long as there's place for development. They're still paying tax on everything else, including renting offices, paying salaries and bonuses etc.
Re:Facebook paid £4,327 corporation tax in the UK in 2014 by exDM69 on Monday October 12, 2015 @07:28AM (#10373823)
> They're still paying tax on everything else, including renting offices, paying salaries

So is every other company operating in Europe, and they have to pay their corporate taxes. But the multinational corporations evade their corporate taxes and get an unfair competitive advantage.

A practical example: a hamburger and fries from a local franchise costs 2 eur (about 20%) more than one from McDonalds, because the latter doesn't pay their taxes to this country, using the same "license fee" trick as Facebook, channeling all of their profits through Netherlands, Luxembourg and/or Ireland.

These tricks are known with names such as "double Irish with a Dutch sandwich".

Re:Facebook paid £4,327 corporation tax in the UK in 2014 by radu_floricica on Monday October 12, 2015 @09:17AM (#10374267)
That's a different case. I was simply saying _tech_ corporations often operate at a loss for a very long time. I'm reasonably sure Amazon didn't make a profit for decades, assuming it does now. This is not paperwork hand-waving, they're actually reinvesting all income, plus as much extra they can raise.
Re:Facebook paid £4,327 corporation tax in the UK in 2014 by exDM69 on Monday October 12, 2015 @10:47AM (#10374807)
> I was simply saying _tech_ corporations often operate at a loss for a very long time.

Facebook is not operating at a loss in the UK or elsewhere. That's just their creative accounting after diverting funds offshore to tax havens in the form of royalties.

The exact same scheme is employed by the aforementioned hamburger franchises.

Re:Facebook paid £4,327 corporation tax in the UK in 2014 by DanBC on Monday October 12, 2015 @06:53AM (#10373676)
> paying salaries

Isn't that a tax paid by the employee, not employer?

Starbucks tried to say that they paid a lot in VAT, but that's a tax paid by the customer not the business.

Re:Facebook paid £4,327 corporation tax in the UK in 2014 by garblegarble on Monday October 12, 2015 @07:20AM (#10373789)
>> paying salaries

>Isn't that a tax paid by the employee, not employer?

It's technically both - there's an element of National Insurance tax paid by the employer and an element payed by the employee (then the employee pays income tax on the remainder). The core of your point is correct, though, the bulk of the tax paid as a result of salaries is taken from the employee

Re:Facebook paid £4,327 corporation tax in the UK in 2014 by radu_floricica on Monday October 12, 2015 @09:15AM (#10374259)
> Isn't that a tax paid by the employee, not employer

I don't know why people still fall for this. The government may say whatever it wants, but the value of the paycheck is market determined which means taxes are taken from both sides. Unequally, of course, depending on how (in)elastic work supply and demand are.

Re:Facebook paid £4,327 corporation tax in the UK in 2014 by spacecowboy_lon on Monday October 12, 2015 @09:24AM (#10374299)
But of course Starbucks claims VAT back so the net VAT paid to the UK government is not the same as the gross
Re:Facebook paid £4,327 corporation tax in the UK in 2014 by Feoj on Monday October 12, 2015 @07:10AM (#10373731)
In the UK employers have to pay a "National Insurance" Contribution on top of the employee's contribution.

https://en.wikipedia.org/wiki/National_Insurance

Re:Facebook paid £4,327 corporation tax in the UK in 2014 by IanCal on Monday October 12, 2015 @07:17AM (#10373762)
Well, I don't think there's a huge difference, the money is taken before people ever see it although some people will claim a bit back.

However, there is also employers NI which is definitely paid by the employer, at 13.8% over a low threshold.