What is corporation tax? If your business is a limited company it must pay corporation tax on its profits – both from trading and from the sale of investments or assets. Currently the rate is 19 per cent.
The United Kingdom arm of American multinational e-commerce company eBay paid a whopping £1.6 Million in corporation tax last year, even though its United States parent company had total revenues from its United Kingdom operations of £1 Billion.
eBay’s United Kingdom account records show £200 Million in revenues, which came entirely from a Swiss parent company, seemingly for acting as its direct-to-consumer advertising partner.
eBay declined to explain how its United Kingdom revenues were not booked. However, an eBay spokesperson confirmed its tax affairs were entirely above board.
“In all countries and at all times, eBay is fully compliant with tax rules, including the remittance of Value-Added-Tax (VAT) to the appropriate authorities.”
Ebay is a huge international business that makes money mainly from advertisers and the commission on sales made through its auction website.
Within the group of companies, the United Kingdom arm of eBay is wholly owned by eBay International, which is based in Switzerland and is itself owned by eBay in the United States.