(DAILYMAIL) — Facebook channelled profits through a series of tax havens in order to pay just £2.9m of corporation tax on more than £800m of overseas profits in 2011, it has been reported.

Like Google and Apple the social networking site is said to have used its headquarters in Ireland to avoid tax liabilities in the UK before directing earnings to a subsidiary in the Cayman Islands.

British companies that buy advertising on Facebook must do so via Facebook Ireland Ltd which entitles the company to sidestep HM Revenue and Customs and authorities in other higher-tax jurisdictions, reported the Sunday Times today.

  • Text smaller
  • Text bigger
Note: Read our discussion guidelines before commenting.