Facebook has come under fire after it was revealed the company paid no taxes in the UK for 2012 despite estimated revenue of £223 million.
However, in 2011, the social network paid £238,000 in taxes.
Margaret Hodge, chairwoman of the public accounts committee, had this to say:
This is yet another example of what appears to be deliberate manipulation of accounts of economic activity to deprive the British taxpayer of a rightful tax contribution, according to the profits they make in the UK. I am getting fed up of this constant stream of stories and little sign of a challenge from HMRC and a strange silence from government.
According to the figures, only £35 million of its UK income was booked.
A spokesman from the social network had this to say:
Facebook pays all taxes required by UK law and we comply with tax laws in all countries where we operate and have employees and offices. We take our tax obligations seriously, and work closely with national tax authorities around the world to ensure compliance with local law.
Facebook is not the only tech company criticized over taxes in the UK, and last month Google was found to have paid just £11.6 million in taxes for 2012 on £3 billion in revenue.
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