eBay pays £1.2m in UK tax on sales of £800m

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

Share this Story
Load More Related Articles
Load More By Red Wolf
Load More In Business

Leave a Reply

Your email address will not be published. Required fields are marked *

Photos from Flickr