‘Silicon six’ tech firms including Facebook dodge £77billion in tax in 10 years

The "silicon six" US tech firms have been accused of aggressively avoiding £77billion in tax in the past decade.

Amazon, Facebook, Google, Apple, Microsoft and Netflix have all been named and shamed in a tax transparency exposé.

The tech giants have all shifted profits to tax havens over the last 10 years, according to the report by campaign group Fair Tax Mark.

Amazon, owned by the world’s richest person Jeff Bezos, has been singled out as the worst offender.

The online retailer has paid just £2.6bn tax on its income over the last decade despite raking in £742.5bn revenue and £20.7bn profits over the same period.

  • Google's secret Halloween trick is a spooktacular treat – but how do you find it?

  • Google birthday: When was website created? What does Google mean?

Fair Tax Mark argues that Amazon’s effective tax rate was 12.7% when the headline rate in the US has been 35%.

Amazon chiefs insisted their “profit margins are low” and that “naturally results in a lower cash tax rate”.

But Fair Tax Mark argued Amazon’s accounting was so complicated there was “no way to discern” how much tax it should be paying.

Facebook paid just £5.9bn in income tax this decade despite revenues of £133.8bn and profits of £58.3bn, according to the report.

The tax paid as a percentage of profit was just 10.2%, Fair Tax Mark says.

  • Kodi WARNING – Illegal streaming jail sentences in HUGE Sky Sports and BT Sport CRACKDOWN

Paul Monaghan, chief of the campaign group said its analysis found “a significant difference” between the cash companies paid and the headline rate of tax.

He said: “We conclude that the corporation tax paid has been much lower than is commonly understood.”

Tax Justice Network head Alex Cobham said: “When multinational corporations abuse their tax responsibilities to society, they weaken the supports that our economies need to work well and create wealth.”

He argues that governments could strengthen their economies by ensuring multinationals paid their fair share.

All six companies dispute the figures and insist they have paid the correct tax.

Source: Read Full Article