Facebook caught minimizing their UK tax burden

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Facebook caught minimizing their UK tax burdenFacebook’s accounts were scrutinized along with their tax planning scheme when the use of an offshore company in Cayman Islands was identified. Facebook has used the so-called ‘Double Irish’ scheme. The tax scheme was built around royalty payments from a UK company to an Irish company which in turn paid royalty to a Cayman Island based company. About 710 million US dollars was channelled through this scheme. Companies like Facebook, Starbucks and others have attracted cash hungry UK authorities. A Facebook spokesman said that the company has done nothing wrong and complied with all tax regulations.