eBay pays £1.2m in British taxes on sales of £800m: report

eBay paid only £1.2 million in tax to the British government, Sunday Times reports
Online auction giant eBay paid only £1.2 million ($1.92 million, 1.47 million euros) in tax to the British government despite generating £800 million in sales in the country, the Sunday Times reported.

Online auction giant eBay paid only £1.2 million ($1.92 million, 1.47 million euros) in tax to the British government despite generating £800 million in sales in the country, the Sunday Times reported.

The denied any wrongdoing.

According to the Sunday Times report, the internet firm notched up sales of £789 million during 2010 at its four British subsidiaries, generating an estimated profit of £181 million.

At the current rate of corporation tax, £51 million would be owed to the exchequer, but instead it received £1.2m, the report said.

The auction site told the BBC: " in Europe works with and complies fully with all applicable tax laws and regimes - including national, EU, and internationally recognised OECD rules."

The report comes days after it emerged that coffee chain Starbucks shifted profits from its £398 million worth of UK sales to its foreign subsidiaries in order to avoid paying any corporation tax.


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(c) 2012 AFP

Citation: eBay pays £1.2m in British taxes on sales of £800m: report (2012, October 21) retrieved 18 July 2019 from https://phys.org/news/2012-10-ebay-12m-british-taxes-sales.html
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