Goofy
12-20-2015, 04:18 PM
http://i.imgur.com/BDl3EtE.png
Netflix did pretty well last year with an estimated revenue of £200 million from its 5million UK customers.
So you’d think we’d be seeing the benefits to the public purse.
But according to an investigation in the Sunday Times, the company paid £0 in corporation tax last year.
The online streaming service, offering programmes like Orange Is The New Black, Sherlock and Breaking Bad, is the latest multinational to be exposed as arranging its affairs to legally avoid paying corporation tax.
They can get away with it because British customers are given contracts through the company’s Dutch arm, Netflix International BV, which paid tax in Luxembourg totaling £573,396.
The company defended the arrangement, saying it is making ‘overall losses’ on its international ventures as it’s currently expanding.
British arm Netflix Services UK was apparently doing so badly it even got a £35,000 income tax credit from the UK government.
British customers typically pay £5.99 a month for Netflix, contributing to its global revenues of $5.5 billion.
It said that it does expect to pay some UK corporation tax this year, The Sunday Times reports.
Hope so, or it will start to get a reputation likes of Amazon, Starbucks and Facebook which have all been scrutinised in recent years for the amount of tax they pay.
Netflix has been approached for comment.
Netflix did pretty well last year with an estimated revenue of £200 million from its 5million UK customers.
So you’d think we’d be seeing the benefits to the public purse.
But according to an investigation in the Sunday Times, the company paid £0 in corporation tax last year.
The online streaming service, offering programmes like Orange Is The New Black, Sherlock and Breaking Bad, is the latest multinational to be exposed as arranging its affairs to legally avoid paying corporation tax.
They can get away with it because British customers are given contracts through the company’s Dutch arm, Netflix International BV, which paid tax in Luxembourg totaling £573,396.
The company defended the arrangement, saying it is making ‘overall losses’ on its international ventures as it’s currently expanding.
British arm Netflix Services UK was apparently doing so badly it even got a £35,000 income tax credit from the UK government.
British customers typically pay £5.99 a month for Netflix, contributing to its global revenues of $5.5 billion.
It said that it does expect to pay some UK corporation tax this year, The Sunday Times reports.
Hope so, or it will start to get a reputation likes of Amazon, Starbucks and Facebook which have all been scrutinised in recent years for the amount of tax they pay.
Netflix has been approached for comment.