Leader: Do we care about Facebook's tax status update?
Has Facebook 'dodged' tax, 'avoided' it, or just simply played by the rules - or even somewhere in between?
Has Facebook 'dodged' tax, 'avoided' it, or just simply played by the rules - or even somewhere in between?
SO FACEBOOK is on the receiving end of the same stick as Google around how it manages its corporate tax affairs in the UK.
The social media giant has been accused of avoiding tax by diverting UK revenues through more ‘tax-efficient’ jurisdictions.
As ever, the grey area between legal and illegal tax management comes to the fore – Accountancy Age has previously stated that individuals can’t expect a pat on the back where they have skipped lightly through legislation to duck tax. This is ‘beyond the pale’, if you pardon the pun.
But each situation has to be judged on its merits – despite what some might say, the compass doesn’t just consist of three points: ‘fair’, ‘immoral’ and ‘illegal’.
Without knowing the ins and outs of Facebook’s tax strategy, we can assume that it has followed tax law – hopefully law that is quite transparent.
If the government doesn’t like what Facebook, Google et al have done, then do something about it.
It is perhaps a timely reminder that global efforts to halt tax dodging only go so far before countries decide to use tax to entice business onto their shores. Corporation tax cut, anyone?
Kevin Reed is the editor of Accountancy Age and Financial Director
More about:
The numbers you crunch tell a story. Your expertis...
12yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleWith proposals for an Amazon tax on the table, how can the UK tax system catch up with the implications of the Fourth Industrial Revolution? Read More...
View articleGlobal corporations are under increasing scrutiny over how much corporation tax they pay. So who are the latest big names hitting the headlines over t...
View articleThe EU is deeply divided over how to increase the tax take from tech giants such as Google, Apple and Amazon, who have recently come under fire for be...
View articleTo avoid falling foul of HMRC's tax crackdown, small businesses now have to be much more vigilant when it comes to tax matters, and it's an ideal oppo...
View articleLaw firm warns that HMRC focus on entrepreneur’s relief could prompt increase in avoidance scheme usage Read More...
View articleDiverted profits tax revenue collected by HMRC in 2016-17 totalled £281m, leaping from £31m collected in the previous year, according to data released...
View articleBillions of pounds of infrastructure investment planned; but tax tinkering still looms following Philip Hammond's first Autumn Statement Read More...
View articleAs advisers prepare for another Autumn Statement, they and their clients hope to avoid the grip of more red tape Read More...
View article