World Bulletin / News Desk
Social media corporations in United Kingdom are obliged to pay taxes just like other companies, a government spokesman said Monday.
"All the companies registered in U.K. are obliged to pay their corporate taxes according to their profits," Patrick O’Brien, a spokesman for Her Majesty's Revenue and Customs, the government department responsible for taxation, said. "There is no separate taxing legislation for social media companies."
Taxation of social media corporations has increasingly become an increasing focus for a number of countries. The Organization for Economic Co-operation and Development, known as the OECD, is working on a report on the problem of corporations transferring their profits to low-rate tax havens.
Robert Schon, a London tax consultant, said new efforts have been made in the U.K., especially following the onset of the financial crisis, to prevent social media companies from transferring their profits abroad without paying taxes.
Schon, a senior tax consultant for Winckworth Sherwood Company, said it was understood that companies such as Google, Twitter and Facebook could not be subjected to double taxation, even if they earned most of their profits from countries other than the U.S. But he said the situation was being looked at.
"We are working in order to make some new arrangements enabling these companies to pay taxes in U.K. as well,” he said.Last Mod: 25 Mart 2014, 15:07