Oct 8, 2018
PayPal tax bill jumps by £3.1m after review by HMRC
PayPal's UK subsidiary has agreed to pay an extra £3.1m in tax following a review by HMRC. Research by the BBC's Wake up to Money found that tax at the e-payments firm rose from £181,000 in 2016 to £4.7m. "In its newly-filed accounts, PayPal says:"HMRC has been reviewing the company's direct tax position. Last week, Chancellor Philip Hammond raised the prospect of a new tax for large technology companies which have frequently been criticised for moving sales through other countries and paying modest amounts of tax in the UK. The Organisation for Economic Co-operation and Development is trying to tackle the problem but is struggling to reach a consensus among its 36 members. Twitter UK has also filed accounts showing a jump in corporation tax from £815,000 in 2016 to £2.4m last year. The division saw revenue rise by 8% to £36.7m last year, while pre-tax profit jumped to £7.8m from £1.2m. The extra tax was covered by a £4.5m payment from an "Affiliated entity". "In response to the Paypal tax review, an HMRC spokesman said:"We do not comment on identifiable taxpayers.
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