Arab Press

بالشعب و للشعب
Saturday, Feb 22, 2025

Facebook under fire over 'outrageous' UK tax bill

Facebook under fire over 'outrageous' UK tax bill

Tech firms have been criticised for the amount of tax they pay, but Facebook says it pays what is legally owed.

Facebook's UK arm paid £28.5m in tax in 2018 as revenues hit a record £1.65bn on the back of strong advertising growth.

The social media firms's latest UK accounts show that profits last year jumped by 54% to £96.6m.

Facebook's total tax charge on those profits almost doubled to £30.4m, but was reduced due to adjustments.

Tax campaigner and MP Margaret Hodge said such a low bill was "outrageous", but Facebook said it pays what it owes.

Gross revenues from advertising and other activities rose 30% in 2018, a year when the Cambridge Analytica affair was at its height and the company was facing heavy criticism.

The UK division spent £356m on research, development and engineering in the UK last year, the accounts filed at Companies House showed.

Steve Hatch, the company's vice president for Northern Europe, said: "The UK is now one of Facebook's most important hubs for global innovation. We continue to grow and invest heavily in the UK and by the end of the year we'll employ 3,000 people here.

"Businesses across the country use our platforms to grow and revenue from customers supported by our UK teams is now recorded here so that any taxable profit is subject to UK corporation tax."

Facebook said it complies with tax laws in all jurisdictions and pays what is legally due.

But Ms Hodge, a former chairwoman of the Public Accounts Committee, and who now leads an all-party parliamentary group looking into the tax system, tweeted that it was "still outrageous" that big tech firms were not paying their fair share into society.

Last month, Amazon came under fire for paying £14.7m in UK corporation tax last year, despite reporting sales of £2.3bn. Google has faced similar criticism.

Earlier this week, the Organisation for Economic and Development (OECD), proposed tax changes aimed at making global firms pay more tax.

The proposals would give governments more power specifically to tax big technology firms such as Apple, Facebook and Google.

Companies that do business in more than one country have long been a challenge for tax authorities, because they can structure their business in a way that minimises their tax bills.

The OECD's proposal includes new rules on where tax should be paid and on the proportion of their profits that should be taxed in each country.
Newsletter

Related Articles

Arab Press
0:00
0:00
Close
The negotiation teams of Trump and Putin meet directly, establishing the groundwork for a significant advance.
Israeli Minister Urges Hamas to Surrender and Depart from Gaza.
Iran Considers Moving Its Capital Due to Urban Difficulties
Israel and Hamas Finalize Sixth Exchange of Hostages and Prisoners During Continuing Gaza Ceasefire
Leaders of BRICS to Gather in Rio de Janeiro for July Summit
Muhsin Hendricks, a trailblazing openly gay imam, was killed in South Africa.
Trump's special envoy for hostage affairs cautions Hamas against challenging Trump before Saturday's deadline.
Two British citizens apprehended in Iran amid escalating tensions.
Israel Issues Threat of Military Action as Hostage Negotiations with Hamas Continue
Hamas Coordinates Worldwide Solidarity Marches in Reaction to U.S. and Israeli Initiative
Israel Warns of Ending Gaza Ceasefire Due to Hostage Situation
King Abdullah II Dismisses US Proposal to Relocate Palestinians, Commits to Welcoming Gaza Children.
Lebanon Installs New Government with Hezbollah's Impact on Key Ministries
Report: Iran Attempted to Assassinate Trump During Election Campaign
U.S. Authorizes $7.4 Billion Arms Sale to Israel
Iran's Supreme Leader Rejects Nuclear Negotiations with the U.S.
UN Chief Denounces Trump's Gaza Plan, Cautions Against Ethnic Cleansing
Pressure Intensifies for a Free Trade Agreement between the UK and GCC in Light of Economic Difficulties
Israel to Withdraw from UN Human Rights Council Due to Accusations of Anti-Semitism
EU Reaffirms Gaza's Essential Role in Future Palestinian State Following Trump's Proposal
Iranian Currency Reaches All-Time Low Amid US 'Maximum Pressure' Initiative.
UN Reaffirms Ban on Deportation from Occupied Territories Amid US Gaza Proposal
Palestinians Fear Repeat of 'Nakba' Amid Ongoing Crisis in Gaza
UAE Aids in the Exchange of 300 Prisoners Between Russia and Ukraine
Egypt Seeks Global Backing for Two-State Solution Following US Proposal for Gaza Plan
Trump's Suggestion to 'Seize Control' of Gaza Represents a Significant Shift in US Policy
French President is the first EU leader to extend congratulations to the new Syrian President.
Tunisian President Appoints New Finance Minister Amid Economic Crisis
Trump Suggests U.S. 'Takeover' of Gaza, Prompting Global Worries
Trump's Proposal for Gaza Provokes Global Debate
President Trump Suggests Moving Gaza's Palestinian Population
Aga Khan IV, Spiritual Leader and Philanthropist, Dies at 88
Erdogan and Syria's Sharaa Talk About Collaboration to Counter Kurdish Militants
Trump Suggests U.S. Control of Gaza Strip Amid Ongoing Conflict
Trump Resumes 'Maximum Pressure' Strategy to Limit Iran's Oil Exports.
Ex-British Soldier Sentenced for Espionage on Behalf of Iran and Fleeing from Prison
Gazans in Egypt Reject Displacement, Struggle with Return to War-Torn Home
Queen Rania Urges Protection of Children’s Rights at Vatican Summit
Hamas Officials Ready to Begin Negotiations for Phase Two of Gaza Truce
Trump Expresses Caution Over Gaza Ceasefire as Netanyahu Visits Washington
Oman to Host 18th Indian Ocean Conference on Maritime Security and Trade
Emir of Kuwait Meets BlackRock CEO for Talks on Investment Opportunities
Queen Rania of Jordan Calls for Global Action on Children’s Rights at Vatican Summit
Egyptian President El-Sisi Invited for White House Meeting Following Jordanian King’s Visit
Queen Rania Calls for Protection of Children’s Rights at Vatican Summit
Israeli Military Operations Continue on Lebanon Border Amid Ceasefire Tensions
Israeli Hostage's Release Highlights Uncertainty Over Family's Fate
Israeli Military Operations Escalate in Southern Lebanon Amid Hezbollah Tensions
Zayed Award for Human Fraternity Announces 2025 Honorees
Kuwait Anticipates a 12% Increase in Budget Deficit for the 2025-2026 Fiscal Year
×