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.
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 |
| 20,413,542 | -13,928,926 | 3,699,057 | |
| Goldman Sachs | 3,160,008,621 | 1,914,749,061 | 421,182,339 |
| 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
Related
To pay tax is the highest level of wisdom to a particular country