Facebook under scrutiny over tax

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FACEBOOK is the latest firm to come under scrutiny over its tax affairs after reportedly siphoning £440 million into an offshore haven to avoid payments in the UK and other overseas markets.

The social networking giant paid £2.9m of corporation tax – including less than £240,000 in Britain – last year, despite making more than £800m in overseas profits in 2011, according to reports.

It is understood Facebook uses its Irish subsidiary, the group’s overseas headquarters, to sidestep tax authorities in the UK and other major markets, in similar legal tactics used by Google and Apple. A Facebook spokeswoman said: “Facebook complies with all relevant corporate regulations”