Author: Honey Wood February 18, 2013
Since going public, Facebook (NASDAQ:FB) has earned itself $1.1 billion in profits.
However, this does not mean the most popular social network site in the world will be paying any federal or state taxes.
In fact, it gets better – not only will Facebook not be paying any taxes on its profits, it will be receiving a fat juicy federal tax refund to the tune of around $429 million.
Citizens for Tax Justice warned consumers this would happen and they did so before Facebook actually went public.
They just released a breakdown of how Facebook has used some rather clever or more to the point, crafty accounting skills in their annual report for 2012.
Tax deductibility on executive stock options figure highly in the way the fiscal report has been calculated – and Facebook gave out masses of these during the course of last year.
In that the figure of deductible amounts came to more that Facebook owed to both the state and federal government in taxes!
The result – Facebook is to receive a whopping tax refund – to the tune of half a billion dollars.
The refund covers taxes Facebook paid for the years 2010 and 2011 – but it does not stop there, the social network giant will be carrying forward ‘another $2.17bn in more tax-option’ tax breaks which they can use in the years to come.
Facebook will be able to continue doing this ‘add infinitum’ which is not that bad considering Facebook offers the majority of its services for free.
World News Resourse: Facebook Due Massive Tax Refund - So No Taxes To Pay For 2012 And Beyond!