The US for-profit corporation and an online social media and social networking service “Facebook” has paid £5.1m in UK corporate in 2016; a slight increase compared to 2015 bill of £4.2m that resulted in criticism of the company’s tax arrangements, Financial Times reported.
In 2016, Facebook’s UK business has reached enormous revenues, which reached £842.4m and an 11 per cent rise in pre-tax profits to £58.4m.
Facebook said in its UK accounts that if the standard 20 per cent corporate tax rate has been applied, its tax bill would have been £11.7m.
However, the company took advantage of legal tax breaks related to employee share awards to lower its final tax bill by more than £6m.
Facebook’s decision to use tax benefits associated with employee share plans could cause problems with HM Revenue & Customs, according to a tax lawyer at one of the british biggest law firms.
He said: “It would certainly be fair to say that the share payments contributed to Facebook’s low tax payments.
California-based company knows an increase in its turnover each year. The company is proving itself, by force, in the economical field internationally.