Languish.org

General Category => Off the Record => Topic started by: Syt on October 24, 2014, 02:31:25 AM

Title: A London school teacher pays more UK tax than Facebook
Post by: Syt on October 24, 2014, 02:31:25 AM
http://qz.com/285380/a-london-school-teacher-pays-more-uk-tax-than-facebook/

http://www.youtube.com/watch?v=UeX-SzAICdw
:P

QuoteA London school teacher pays more UK tax than Facebook

Facebook's corporation tax in the United Kingdom for 2013 came to a grand total of £3,169 ($4,005). The company also received £185,196 in credits from previous years, leaving it with a credit balance of £182,027, according to documents filed with Companies House on Tuesday, Oct. 21.

The income tax paid by an inner London school teacher on the minimum starting salary of £27,543 comes to over £3,500.

Facebook reported turnover of £49.85 million, with a gross profit of £49.28 million. But some pesky "administrative expenses" piled up and came in at £60.9 million, largely due to stock-based compensation for its employees. Facebook employed 208 people in the UK at the end of 2013—and each one pays more personal tax than the company.

(https://languish.org/forums/proxy.php?request=http%3A%2F%2Fimg.qz.com%2F2014%2F10%2Ffacebook-uk-financials-2013_chartbuilder1.png&hash=0f54592ce08761ae2270677599d9c01b1af15aa6)

How does such a large, well-oiled and—in the US at least—profitable company manage to erase its entire profit for tax purposes? With the help of very good, very expensive lawyers. According to the Evening Standard, citing figures from eMarketer, Facebook made some £371 million in revenues in the UK last year, but booked most of those sales in Ireland, where corporate tax rates are among the lowest in Europe.

Large companies can use a complicated structure known as the "double-Irish" to move cash around various countries until the effective tax rate comes close to zero.

The actions of companies such as Facebook, Google, and Apple, among others, have attracted the ire of both local and European regulators and politicians. The European Commission has recently made noises about investigating the tax dealings of Apple and Amazon, among others, and Ireland has promised to phase out its loopholes (though not everyone believes it). In the meantime, however, residents of Britain—and much of Europe—can pat themselves on the back and feel wryly smug about contributing more to their country's operations than some of the biggest companies in the world.
1

Facebook declined to comment.
Title: Re: A London school teacher pays more UK tax than Facebook
Post by: The Brain on October 24, 2014, 02:33:17 AM
The ire of rulemakers when people just follow the rules they themselves set up doesn't seem entirely mature.
Title: Re: A London school teacher pays more UK tax than Facebook
Post by: Syt on October 24, 2014, 02:38:08 AM
Quote from: The Brain on October 24, 2014, 02:33:17 AM
The ire of rulemakers when people just follow the rules they themselves set up doesn't seem entirely mature.

I presume they are just upset that they don't get their cut.
Title: Re: A London school teacher pays more UK tax than Facebook
Post by: Brazen on October 24, 2014, 03:50:57 AM
I bet this teacher pays more tax than most corporations:

QuoteA headteacher of a primary school is being paid more than £200,000 a year – taking her earnings above those of the prime minister.

Isabel Ramsay's salary and pension package at Bandon Hill Primary School in Wallington, south-west London, comes to £205,076, – dwarfing David Cameron's £142,500.

She even out-earns her boss, Niall Bolger, chief executive of Sutton Council, who brings in £192,108 a year.

http://metro.co.uk/2014/10/24/headteacher-whose-salary-is-60k-more-than-the-prime-minister-4919439/ (http://metro.co.uk/2014/10/24/headteacher-whose-salary-is-60k-more-than-the-prime-minister-4919439/)
Title: Re: A London school teacher pays more UK tax than Facebook
Post by: Tamas on October 24, 2014, 04:30:23 AM
The UK should learn from the current Hungarian government: when there is a sector which performs better than lukewarm (although Facebook UK doesn't seem to be like that), they issue a special tax on it to rake in all the profits themselves.

It is a true triumph of socialism.
Title: Re: A London school teacher pays more UK tax than Facebook
Post by: The Brain on October 24, 2014, 04:34:25 AM
Socialism sounds great. Can I learn more somewhere? :)
Title: Re: A London school teacher pays more UK tax than Facebook
Post by: Martinus on October 24, 2014, 06:01:27 AM
Quote from: The Brain on October 24, 2014, 04:34:25 AM
Socialism sounds great. Can I learn more somewhere? :)

When the UK leaves the EU, Hungary gets kicked out of the EU and Tamas gets deported, you will be able to hire him as a tour guide for Hungarian socialism at an affordable market rate of two beets per hour.
Title: Re: A London school teacher pays more UK tax than Facebook
Post by: The Brain on October 24, 2014, 07:23:09 AM
Tampax will be caught beetween a rock and a hard place. :(
Title: Re: A London school teacher pays more UK tax than Facebook
Post by: Jacob on October 24, 2014, 11:10:35 AM
Are you guys seriously suggesting that Facebook's UK tax bill is a reasonable outcome?
Title: Re: A London school teacher pays more UK tax than Facebook
Post by: grumbler on October 24, 2014, 11:44:50 AM
Quote from: Jacob on October 24, 2014, 11:10:35 AM
Are you guys seriously suggesting that Facebook's UK tax bill is a reasonable outcome?

Of course not.  "Gross Profit" can't be presented before costs are even considered, since profits are revenue minus costs.  It's a moronic graph.
Title: Re: A London school teacher pays more UK tax than Facebook
Post by: Admiral Yi on October 24, 2014, 11:59:07 AM
If they operated at a loss for the year, I don't see why they're paying any tax at all.
Title: Re: A London school teacher pays more UK tax than Facebook
Post by: Grey Fox on October 24, 2014, 12:02:52 PM
Quote from: Admiral Yi on October 24, 2014, 11:59:07 AM
If they operated at a loss for the year, I don't see why they're paying any tax at all.

The issue is that it's all fake.
Title: Re: A London school teacher pays more UK tax than Facebook
Post by: alfred russel on October 24, 2014, 12:15:47 PM
Quote from: grumbler on October 24, 2014, 11:44:50 AM
Quote from: Jacob on October 24, 2014, 11:10:35 AM
Are you guys seriously suggesting that Facebook's UK tax bill is a reasonable outcome?

Of course not.  "Gross Profit" can't be presented before costs are even considered, since profits are revenue minus costs.  It's a moronic graph.

:lol:

Gross profit is the measure of revenue less costs of goods sold, while other expenses and gains and losses contribute to net income.

It isn't a moronic graph, it just requires a bit of knowledge of financial terms.
Title: Re: A London school teacher pays more UK tax than Facebook
Post by: grumbler on October 24, 2014, 12:21:12 PM
Quote from: alfred russel on October 24, 2014, 12:15:47 PM
Quote from: grumbler on October 24, 2014, 11:44:50 AM
Quote from: Jacob on October 24, 2014, 11:10:35 AM
Are you guys seriously suggesting that Facebook's UK tax bill is a reasonable outcome?

Of course not.  "Gross Profit" can't be presented before costs are even considered, since profits are revenue minus costs.  It's a moronic graph.

:lol:

Gross profit is the measure of revenue less costs of goods sold, while other expenses and gains and losses contribute to net income.

It isn't a moronic graph, it just requires a bit of knowledge of financial terms.
(https://languish.org/forums/proxy.php?request=http%3A%2F%2Fwww.knittinghelp.com%2Fforum%2Fimages%2Fsmilies%2Faug08_031.gif&hash=3fc20d847f9d5d423bebf56f611acb153ed72bff)
Title: Re: A London school teacher pays more UK tax than Facebook
Post by: grumbler on October 24, 2014, 12:26:03 PM
Quote from: Grey Fox on October 24, 2014, 12:02:52 PM
Quote from: Admiral Yi on October 24, 2014, 11:59:07 AM
If they operated at a loss for the year, I don't see why they're paying any tax at all.

The issue is that it's all fake.

All high finance is "fake."  No actual currency is changing hands.
Title: Re: A London school teacher pays more UK tax than Facebook
Post by: garbon on October 24, 2014, 01:48:34 PM
Quote from: grumbler on October 24, 2014, 12:26:03 PM
Quote from: Grey Fox on October 24, 2014, 12:02:52 PM
Quote from: Admiral Yi on October 24, 2014, 11:59:07 AM
If they operated at a loss for the year, I don't see why they're paying any tax at all.

The issue is that it's all fake.

All high finance is "fake."  No actual currency is changing hands.

I'm changing hands.
Title: Re: A London school teacher pays more UK tax than Facebook
Post by: Admiral Yi on October 24, 2014, 02:04:48 PM
Slut
Title: Re: A London school teacher pays more UK tax than Facebook
Post by: garbon on October 24, 2014, 02:52:29 PM
:angry: