eBay the next company to be exposed for tax avoidance - Paid Â£1.2m in tax on Â£181m

Brennan · October 22, 2012

US auction site eBay has paid only Â£1.2m in tax in the UK, according to an investigation by the Sunday Times.

The newspaper said that its tax bill in 2010 comes despite eBay's UK subsidiaries generating sales of Â£800m.

The auction site - which also owns PayPal - responded that it "complies fully with all applicable tax laws".

The report comes after coffee giant Starbucks was also accused of paying just Â£8.6m in corporation tax in the UK over 14 years.

According to the Sunday Times, eBay had sales of Â£789m during 2010 in the UK at its four British subsidiaries. Using its worldwide profit margin of 23%, it would have made a profit in the UK of Â£181m, leading to corporation tax owed of Â£51m.

Instead, it paid Â£1.2m, the report said.

If my math is correct that's a tax rate of 0.15%.

noharmdone · October 22, 2012

Paypal based in Luxembourg.. had murder with them over the years..

zed · October 22, 2012

Brennan91 said:
If my math is correct that's a tax rate of 0.15%.

ITS MATHS!

Deleted member 28206 · October 22, 2012

S.A.R.L

Brennan · October 22, 2012

zed said:
ITS MATHS!

My math tells me that you are incorrect.

Slavan · October 23, 2012

we need to boycott these companys.

are vodafone the same?

McBain · October 23, 2012

And this is new?

Puhlease how do you think Rich People Get Rich?

Being Nice about it?

ash88 · October 23, 2012

the annoying thing is that HMRC will chase you for every penny you owe them which is nothing compared to the big companies

Brennan · October 23, 2012

McBain said:
And this is new?

Puhlease how do you think Rich People Get Rich?

Being Nice about it?

No, i was completely unaware that companies avoid paying the level of taxes they should.

And implying that every person who gets rich does so by avoiding paying the appropriate level of taxes is ridiculous.

Howards tipple · October 23, 2012

ash88 said:
the annoying thing is that HMRC will chase you for every penny you owe them which is nothing compared to the big companies

This is very true. The country is owed billions in unpaid corporate tax and yet, if you are not filling in a tax return on time they come after you with a fine!

Mrk · October 23, 2012

I don't think we should be taxing businesses too much, but 0.15% takes the piss.

paulbefc · October 23, 2012

Starbucks need f*cking for this as well. Costa pay around Â£15m a year in tax, I think, but Starbucks charge themselves for using their own naming rights to make it appear as if they make no profit. [Poor language removed] all we can do about it. Â£15m a year that could build schools and improve the lives of the worse off goes straight into the pockets of the fat cats. *sighs*. I believe in free trade to a pretty considerable extent but ffs.

Moomin · October 23, 2012

My old company is bad for tax avoidance, big blue chip corporation from the States who never paid a doller on tax a few years back.

McBain · October 23, 2012

Brennan91 said:
No, i was completely unaware that companies avoid paying the level of taxes they should.

And implying that every person who gets rich does so by avoiding paying the appropriate level of taxes is ridiculous.

Well, Richer. 1 in 30 people who earn over 200k per year pay no tax.

Moomin · October 23, 2012

ash88 said:
the annoying thing is that HMRC will chase you for every penny you owe them which is nothing compared to the big companies

I'm getting screwed by them for a mistake a previous company made on my p11d.

I've apparently underpaid tax for 2 years due to it. Paying for it this year.