Video-on-demand streaming service Netflix has witnessed a rapid rise in popularity in the UK since its launch there in 2012, boasting 4.5 million subscribers at last count, each paying a minimum of £5.99 a month, and yet the company did not pay a penny in corporation tax to the UK last year, according to a report in The Sunday Times (paywalled, via The Guardian).
Netflix brought in £200 million in revenue in 2014, but its profits were filed overseas, allowing the company to bypass paying any tax into the UK’s coffers. At the time, Netflix International BV was based in Luxembourg, meaning that the only tax it was legally liable for was 5% income tax to Luxembourg. The company has not broken any law, but is merely using an available loophole in UK tax policy to avoid any levies within the country.
A spokesperson for Netflix maintains that, while it continues its current international expansion plans, that it is making a loss overall. The spokesperson also added that its UK operation only employs 12 people and that it is “fully compliant with all applicable rules.”
The UK is Netflix’s second biggest market, after the US which boasts over £40 million subscribers, and is predicted to inflate its British customer base to 9.5 million by 2020.
According to a new report, the GeForce RTX 5090 GPU will be very expensive. It…
A new AMD processor in the form of an engineering model has been leaked in…
SK Hynix has claimed to be the first company to mass-produce 321-layer NAND memory chips.…
SOUNDS GREAT – Full stereo sound (12W peak power) gives your setup a booming audio…
Special Edition Yoshi design Ergonomic controller shape with Nintendo Switch button layout Detachable 10ft (3m)…
Fluid Motion: These flight rudder pedals are smooth and accurate that enable precise control over…