US auction site eBay has paid only £1.2m in tax in the UK, according to an investigation by the Sunday Times.
The newspaper said that its tax bill in 2010 comes despite eBay’s UK subsidiaries generating sales of £800m.
The auction site — which also owns PayPal — responded that it complies fully with all applicable tax laws
.
The report comes after coffee giant Starbucks was also accused of paying just £8.6m in corporation tax in the UK over 14 years.
According to the Sunday Times, eBay had sales of £789m during 2010 in the UK at its four British subsidiaries. Using its worldwide profit margin of 23%, it would have made a profit in the UK of £181m, leading to corporation tax owed of £51m.
Instead, it paid £1.2m, the report said — via redwolf.newsvine.com
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