Reply to post: Re: The system is broken

Facebook pays, er, nope, gets £11m credit from UK taxman HMRC...

Graham Cobb

Re: The system is broken

And ultimately who pays the tax on "profits" ?

Hint - its the same mugs that pay pay VAT

No, that isn't always the case. It is only the case if the company can raise prices as it likes. In a competitive environment, the tax (or at least part of it) will be being paid by the shareholders because a competitor making less profit will pay less tax and will be able to offer a lower price.

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