Tax Avoiding Companies in the UK

Some interesting data about large multinationals and the amount of tax they have paid in the UK, compared to their turnover.

If we look at tax as a % of 2011 turnover, we see many paying a small percent.

tax-turnover-avoidance

Source: Guardian data via Duedil

The share of turnover paid in tax by Facebook, might look impressive, but Facebook have been accused of under-reporting their true turnover in the UK.

Facebook paid its 90 UK-based staff an average of £275,000 each in 2011 while contributing just £195,890 to the Treasury’s coffers. Facebook reported UK revenues of £20.4m, but media analysts estimate that the true UK turnover is closer to £175m in 2011. (Facebook under-report)

Total Tax Paid by Selected Companies

UK turnover, 2011 £ Profit before tax, 2011 £ Tax paid, 2011
Amazon.co.uk 207,696,000 3,092,000 1,880,000
Apple 69,743,000 43,485,000 5,007,000
Coca Cola 1,765,135,000 256,277,000 39,144,000
Facebook 20,413,542 -13,928,926 3,699,057
Goldman Sachs 3,160,008,621 1,914,749,061 421,182,339
Google 395,757,534 -20,717,565 3,448,446
IBM 3,974,300,000 327,500,000 70,500,000
Kellogg’s 107,151,000 31,292,000 12,737,000
Mars 788,697,000 99,844,000 27,534,000
McDonald’s 1,248,549,000 176,563,000 42,344,000
Microsoft 663,198,000 66,538,000 19,024,000
Starbucks 397,716,437 -32,853,958 0
Wal-Mart 21,847,700,000 443,400,000 190,500,000

The investment bank, Goldman Sachs paid by far the largest amount of corporation tax.

Microsoft Tax Avoidance

Microsoft pay just 3% of their turnover. Some estimate Microsoft’s worldwide tax avoidance amounts to $4.6 billion, with approx £105m in the UK. (Microsoft tax avoidance)

Google Tax Avoidance

Google is estimated to put 90% of its turnover through its Irish subsidiary to benefit from lower corporation tax in Ireland. It also routes some money through Bermuda

Google had £2.5bn of UK sales in 2011. But only paid £3.4 million UK tax. A tax rate of 00.1%   despite having a global-wide profit margin of 33%.

Amazon

Amazon had a turnover of £3.9 bn but the company paid just £1.9m in tax – the equivalent of just 2.5 % of its estimated profits

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4 Responses to Tax Avoiding Companies in the UK

  1. kitambi December 12, 2012 at 7:14 pm #

    To pay tax is the highest level of wisdom to a particular country

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